
Goldman invests in KKR-owned Goodpack as part of refinancing

Goldman Sachs Asset Management (GSAM) has made a structured investment in Goodpack, a Singapore-based container manufacturer controlled by KKR, as part of a broader refinancing transaction.
GSAM, which is participating through its infrastructure investing business, did not disclose the size of the deal. Debtwire, AVCJ’s sister title, reported last month that Goodpack was seeking a USD 790m five-year loan to refinance an existing USD 765m facility, the bulk of which was due to mature within 12 months.
KKR’s SGD 1.4bn (USD 1.1bn) privatisation of the then Singapore-listed company in 2014 represented the first time a private equity firm had used a term loan B for an acquisition in Asia.
The deal was supported by a USD 550m term loan B and a USD 170m second lien loan, plus a USD 85m revolving credit facility and a USD 30 letter of credit, according to Debtwire. A first refinancing was completed in 2018; Goodpack secured a USD 610m term loan B and a USD 155m second lien loan. These loans were set to mature in June 2023 and June 2024, respectively.
Last year, Goodpack received financing from China Merchant’s Group “in the form of debt instruments that can help shore up [its] financial flexibility,” reported Mergermarket, also an AVCJ sister title. KKR had initiated a formal exit process in 2019 - reportedly targeting USD 2bn for the business - but this was still on hold at the time of the China Merchant’s transaction.
S&P highlighted the refinancing risks in a report published in October, observing that the USD 765m facility represented 80% of Goodpack’s debt structure. S&P said that Goodpack was in the process of refinancing the term loan B and it didn’t envisage any difficulty in this being completed by November.
The rating agency added that refinancing was initially targeted for completion six months earlier but had been delayed by macroeconomic challenges triggered by the Russia-Ukraine conflict. It also noted the impact of “continued trade disruptions, high energy costs, and recessionary risks” weigh on Goodpack, “especially given the company's large exposure to the cyclical automotive industry.”
At the same time, however, freight rates and steel prices were easing from the peaks seen earlier in the year. This - combined with the implementation of a surcharge in contracts - had enabled the company to improve its EBITDA margin, contributing to a fall in the debt-to-EBTIDA ratio.
Goodpack is the largest global provider of intermediate bulk containers (IBCs) – reusable metal containers that typically carry rubber, food products, automotive components, and other industrial goods. The Singapore-headquartered company owns a fleet of over 4m IBCs and operates a supply chain network spanning over 70 countries with around 5,000 delivery and collection points.
GSAM said in a statement that it will work alongside existing investors and management in the pursuit of Goodpack’s strategic ambition to drive further adoption of its sustainable, high quality and cost-efficient logistics solution.
“Goodpack provides essential transport and logistics services and benefits from strong customer relationships, a well-established network and a large asset base. The Goodpack team has built an impressive, circular business model which is well-placed to continue to grow,” said Philippe Camu, chairman of global infrastructure investing at GSAM.
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