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Klöckner Pentaplast : The Klock ticks
Klockner Pentaplast (KP) has just published slightly improved Q3 results, in a persistently difficult environment. The company is making step-by-step progress with its transformation plan, the first effects of which are just beginning to be felt. KP is aiming for regular refinancing of its secured and unsecured 2026 debts, which become current in Q1 2025 and Q3 2025 respectively. There is therefore very little time left, and an attempt could be made in the next few days. However, the capital structure has become unsustainable, with a high cash burn and leverage: KP cannot assume any further interest costs. The group has been sounding out the market for some weeks now and probably already has a plan in mind: in our view, SVP will either inject equity or force lenders to accept a discounted transaction on the unsecured debt. We upgrade our recommendation to Neutral (vs Reduce) on the SSNs (97.5% ask price) and SUNs (87.9%).
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Oddo BHF
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
Joan Sehim
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