Loparex has around $1.45 billion of debt and completed a distressed debt exchange in 2024 that gave it $135 million of new money.
Loparex has sounded out private credit investors for new debt to refinance its existing borrowings, nearly two years after the firm completed a distressed exchange amid weak demand and high interest costs.
The company is seeking as much as $1.5 billion of debt to refinance its first-and second-lien loans, according to people familiar with the matter who asked not to be identified discussing private information.
Loparex, owned by Pamplona Capital Management, completed a distressed debt exchange in 2024 in a deal that gave it $135 million of new money. But S&P Global Ratings cautioned at that time that its debt load remained unsustainable despite the revamp, with the firm "dependent on a favorable turn in business and economic conditions" to meet its longer-term liabilities.
Representatives for Loparex and Pamplona didn't respond to requests for comment. Talks are preliminary and a deal may not materialize.
Loparex bought Enterprise Coated Products Inc. late last year as it sought to expand its offering in a market that's grappled with volatile material prices, plant closures and evolving regulation.
Private credit firms have become go-to financiers for troubled businesses because they typically offer more flexible debt deals -- albeit at higher borrowing costs -- than their banking rivals. Given Loparex's history, some distressed players could potentially also participate in the refinancing, some of the people said.
Loparex, which makes adhesive liners -- a type of coated film or paper that protects sticky surfaces like Band-Aids -- has around $1.45 billion of debt, according to data compiled by Bloomberg.
With the 2024 debt exchange, some of Loparex's lenders rolled up their holdings into a $658 million super priority facility, which would get paid out first. That debt matures in February 2027, according to the S&P report.
