Pretium Packaging Embarks on Financial Restructuring to Propel Future Growth

Pretium Packaging's Strategic Restructuring

Pretium Packaging, L.L.C., a renowned provider of sustainable packaging solutions, has recently declared a significant financial restructuring initiative. This initiative is poised to enhance the company's growth trajectory and strengthen its capital structure. The restructuring aims not only to alleviate existing debt but also to secure additional liquidity for ongoing operations and innovation.

Overview of the Transaction

The pivotal aspect of this financial maneuver includes a pre-packaged consensual restructuring agreement with its current lenders and equity partner, Clearlake Capital Group. This transaction is expected to lead to a reduction of funded debt exceeding $900 million while simultaneously providing over $175 million in liquidity. It will also facilitate approximately $530 million in new near-term debt commitments from existing lenders along with a fresh equity investment of $50 million from Clearlake.

CEO James Rooney commented on this development, emphasizing that the restructuring is a strategic move to create flexibility for future investments in products, personnel, and enhanced customer relationships. This decision showcases Pretium’s resilience and adaptability in an industry marked by challenges, particularly in the post-pandemic era.

Commitment to Sustainability and Growth

Pretium Packaging has made considerable advancements in the realm of sustainable packaging, leveraging innovations to boost manufacturing excellence and product diversification. Now, with a restructured, significantly de-leveraged capital framework, the company is more equipped to handle the evolving demands of the marketplace.

Rooney's confidence in the workforce and infrastructure stands firm, asserting their readiness to capitalize on upcoming opportunities. The dedication to delivering exceptional value to customers remains a core priority, ensuring that Pretium retains its role as a trusted partner in the packaging landscape.

The strategic support from Clearlake is indicative of their strong partnership established since 2020. Clearlake’s José E. Feliciano remarked on Pretium's remarkable endurance through economic hardships, and the recent investment was elaborated as a testament to their continued commitment towards the business.

Operational Continuity

As Pretium transitions through this recapitalization process, operations are expected to run smoothly, adhering to all vendor and supplier agreements. The company actively supports its critical stakeholders while advancing towards a successful conclusion of this restructuring.

With approximately 90% of Pretium’s secured lenders onboard, the team anticipates a rapid completion of the ongoing process, underscoring a positive outlook for the firm moving forward.

About Pretium Packaging

Pretium stands at the forefront of packaging innovation, providing tailored solutions across various sectors including food, beverage, healthcare, and personal care. The company’s commitment to sustainability is underscored by their utilization of materials that include up to 100% post-consumer recycled content. Furthermore, their operational capabilities are bolstered by a robust network of 24 automated manufacturing facilities nationwide.

Clearlake Capital Group

As a diversified global investment firm, Clearlake Capital has extensive expertise in a variety of sectors including technology and consumer goods. Their hands-on operational approach ensures that partners like Pretium receive the necessary support to thrive in competitive landscapes. With over $90 billion in assets under management, Clearlake remains dedicated to enhancing the growth potential of its portfolio companies.

In summary, Pretium Packaging's comprehensive restructuring marks a strategic turn towards sustained growth and innovative solutions within the packaging industry, reinforcing its position as a leader committed to both operational excellence and environmental stewardship.