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SVPGlobal Portfolio Company Klöckner Pentaplast Completes Successful Re-Financing

SVPGlobal Portfolio Company Klöckner Pentaplast Completes Successful Re-Financing

Capital Returned to Investors after 10 Months of Ownership

Greenwich, CT and London, May 8, 2013 – Strategic Value Partners, LLC (“SVP Global”), a leading global investment firm focused on distressed and deep value opportunities, today reported that the holding company of Klöckner Pentaplast (“kp” or the “Company”), the global leader in rigid films and packaging solutions which was acquired by a group of investors led by SVP Global in a June 2012 re-capitalization, has completed a re-financing.

Proceeds from the €225 million ($294 million) financing will be used to partially re-finance the existing Preferred Equity Certificates issued as part of last year’s re-capitalization and will lead to a substantial return of capital (including the return of all the new monies invested last June) to investors after just 10 months of ownership. Due to its strong performance under SVP Global, kp will remain conservatively leveraged following the re-financing transaction – with net debt at HoldCo being 4.6x EBITDA for the 12 months through December 2012 – and the Company believes it is well positioned to drive to its next level of operating performance.

Victor Khosla, Founder and Chief Investment Officer of SVP Global, said:

“We are delighted with the performance of kp and to be partners with such a strong management team. This re-financing allows for the return of significant capital to investors in less than one year, while leaving the Company well positioned to deliver on its strong prospects both in its current markets and as it expands into newer emerging markets in Asia and South America.”

Christian Holtmann, CEO of kp, said:

“We are pleased that the strong operational performance of kp has enabled this successful re-financing to occur. We look forward to continuing to work closely with our board and SVP Global and delivering our group strategy of ‘Grow the core, extend the reach, expand the breadth.’”

Since the re-capitalization last June, SVP Global has worked closely with the Company to help its management team to deliver excellent operational results. Performance has improved substantially with Adjusted EBITDA increasing by nearly 15% from €143 million for the LTM to March 2012 to €164 million for the LTM to December 2012. This acceleration in both growth and profitability has been driven by a number of initiatives including: market share gains in high profitability sectors; margin improvement both through selective price increases plus active raw material management; and a comprehensive, global operational improvement program. The Company believes it is characterized by a unique profitable growth profile and a high conversion of EBITDA to cash flow.

This strong operational performance and related cash flow generation has enabled the Company to make voluntary repayments of its senior debt, delivering an almost 10% reduction in net debt between end of June and December 2012. Kp has therefore been able to complete this debt re-financing while keeping the its capital structure on what we believe to be very solid footing.

About Klöckner Pentaplast
Kp is headquartered in Montabaur, Germany and is the global leader in rigid plastic film and packaging solutions. The Company has sales of €1.2 billion ($1.6 billion) and employs just over 3,000 people committed to serving customers worldwide. Its operations in Europe and the Americas, including Brazil and Argentina, contribute equally to profits, and the Company is growing its Asian activities. Kp benefits from unique access to blue chip customers, including global pharmaceutical groups, and has developed intimate relationships with its customers over many years. The Company is first or second in the majority of its markets across Europe and North America as well as a rapidly growing presence in emerging markets around the globe.

About SVP Global
SVP Global was founded in 2001 by Victor Khosla. With firm assets primarily across a hedge fund strategy ($1.6 billion) and private equity funds ($2.1 billion raised), SVP is a leading global investment firm with primary offices in Greenwich (CT), London, Frankfurt, and Tokyo. SVP is focused on distressed and deep value opportunities. SVP seeks to create value in its investments through its substantial industry, restructuring and operating expertise.