Pretium Packaging, the US-based bottle and jar manufacturer owned by private equity firm Clearlake Capital Group, has reached an agreement with a majority group of lenders to restructure its debt, according to a report by Bloomberg citing unnamed people familiar with the matter.
Under the terms of the restructuring agreement, Clearlake will remain the company’s largest shareholder, while creditors have agreed to support a transaction aimed at stabilising Pretium’s capital structure and allowing the business to continue operating.
The St Louis-headquartered company is now seeking broader lender participation and has asked remaining creditors to sign non-disclosure agreements in order to review the proposed deal, the people said. Discussions remain ongoing and the final structure has yet to be agreed.
Clearlake acquired Pretium in 2020, but the packaging manufacturer has since faced pressure from weaker consumer demand and elevated inflation, which have weighed on revenues. Earnings have also been constrained by a heavy interest burden as financing costs rose.
As part of the restructuring, Clearlake and existing lenders may provide additional capital to support the business. Trade vendors are expected to continue to be paid in the ordinary course, according to the restructuring agreement.
Pretium has previously undertaken liability management exercises. In 2023, the company completed a distressed debt exchange that altered creditor priority, and subsequently repurchased a portion of its second-lien loans at below-par prices. S&P Global Ratings later said the transaction amounted to a default, as lenders received less than the original contractual value.
