Latham Advises on Kapla Holding’s Liability Management Exercise and New Issue of €650 Million Senior Secured Floating Rate Notes

Latham & Watkins has advised the initial purchasers and dealer managers on the issue of €650 million of senior secured floating rate notes due 2030 by Kapla Holding, the parent company of the equipment rental company Kiloutou, one of the leading European players in the equipment rental market. The transaction encompasses a new issue of senior secured floating rate notes due 2030 and a liability management exercise, consisting of an exchange offer to holders of its outstanding senior secured floating rate notes due 2026 (the Exchange Offer) and an offer to purchase for cash from certain eligible holders of its outstanding senior secured notes due 2027 (the Tender Offer).

Kapla Holding used the net proceeds of the notes offering to (i) pay the consideration for the Tender Offer, (ii) repay certain amounts outstanding under its revolving credit facility, (iii) fund the redemption of all of the remaining 2027 Notes and (iv) fund the redemption of all outstanding senior secured floating rate notes due 2026 not tendered pursuant to the Exchange Offer.

Latham advised on US and French legal aspects with a team led from Paris by capital markets partner Roberto Reyes Gaskin, with associates Laurie Tomassian and Samy Amirouchen. Advice was also provided on financing matters by Paris partners Xavier Farde and Carla-Sophie Imperadeiro, with associates Virginie Terzic and Bruna Neiva Cardante; and on tax matters by New York partner Jocelyn Noll and Paris partner Xavier Renard, with Paris associate Alexis Caminel.