Keter Plastic and BC Partners are under pressure to find a source to refinance the loan the fund took out to buy the company for 1.2 billion euros.
It comes after, as revealed in Calcalist last November, the band delayed plans to go public on Wall Street. Moreover, the last attempt to refinance the debt, last January, failed.
Next October, a year before the October 2023 maturity of the loans, BC Partners is to present a solution to finance the repayment of the debt, as reported by several global media.
BC Partners now faces an option to extend the terms of the debt or to refinance the debt with private credit funds, but the economic crisis is expected to make it difficult to repay the debt.
Keter Group CEO Alejandro Pena had planned to lead the company to an IPO last September, but failed to do so after receiving negative market indications of the expected value. Pena then attempted to refinance Keter’s debt, a step that usually takes place at least 18 months before the debt matures, but such a refinance attempt failed.
Now, with the company approaching less than a year from maturity, it risks being downgraded by the rating agencies.