Klöckner Pentaplast - comment

We recently sold our position in the SSNs, whose deal has been elusive since January of this year. The bonds are due in February, less than six months away now, and we are increasingly concerned that the renewed threat of specific Pharma tariffs from the US might impact not so much its US operations, but those packaging sales in Europe for subsequent exports of client products to the US. The SSNs are still at 87c/€ now, and a straight refinancing looks increasingly unlikely. So the downside to a short looks somewhat limited.