Coveris Holdings S.A. Launches Term Loan Consent Solicitation Related to Sale of Americas Business; Provides Trading Update

CHICAGO–(BUSINESS WIRE)–Coveris Holdings S.A. (“Coveris” or “the Company”), a premier global
packaging manufacturer, today announced an amendment process to its
existing credit agreement dated November 8, 2013 to allow for the full
repayment of the Senior Notes, the USD Term Loan and the ABL Facilities.
The repayment will be made with the proceeds from the sale of the
Company’s Americas business to Transcontinental Inc. ("TC
Transcontinental"), which was announced yesterday.

Upon the closing of the sale of the Americas business, the Company’s
remaining operations will consist of its Rigid, EMEA, and UK Food &
Consumer businesses, and it will have manufacturing facilities in 14
countries, 44 strategically located facilities and over 8,000 employees.
The business will focus on Europe where it is one of the largest players
in the highly fragmented plastics packaging market. Sales will be
comprised approximately of 58% flexible packaging and 42% rigid
packaging. The majority of the Company’s end markets will be focused on
food and other growing consumer segments.

Jakob A. Mosser, Chief Executive Officer of Coveris: “We are very
excited about the sale of our Americas business to TC Transcontinental.
This sale will enable us to focus on our operations in Europe, where we
are one of the largest players in the flexibles and rigid packaging
market. This supports our recent strategic focus on high performance and
sustainable packaging solutions for food, pet food and the medical and
pharmaceutical markets.”

Pro forma for the sale of the Americas business, the Company’s adjusted
EBITDA and sales for the year ended December 31, 2017 would have been
€132.4 million (including €21 million of expected synergies in 2018) and
€1.4 billion, respectively.

Pro forma for the sale of the Americas business and based on the
Company’s preliminary management accounts for the two months ended
February 28, 2018, the Company estimates that its adjusted EBITDA
increased approximately by 2.2%, from €14.2 million for the two months
ended February 28, 2017 to approximately €14.6 million for the two
months ended February 28, 2018, and that its sales increased slightly,
from €211.6 million for the two months ended February 28, 2017 to
approximately €212.3 million for the two months ended February 28, 2018.
These results were mainly driven by improvements in the Company’s
revenue trends, along with productivity and procurement benefits.

In addition, the Company currently forecasts that, giving pro forma
effect to the sale of the Americas business (as though that sale had
happened on January 1, 2018), its estimated adjusted EBITDA for the
three months ended March 31, 2018 and the year ended December 31, 2018
will be between €23.5 million and €24.5 million and between €128 million
and €135 million, respectively, and its estimated sales for the three
months ended March 31, 2018 and the year ended December 31, 2018, will
be between €325 million and €332 million and between €1,380 million and
€1,420 million, respectively.

The preliminary results for the two months ended February 28, 2018 are
based on internal management accounts. This preliminary information has
not been subject to our normal quarter-end closing procedures and is not
intended to be a comprehensive statement of our financial results for
the two months ended February 28, 2018 and you should not place undue
reliance thereon because this data may not reflect the results we will
report for the three months ended March 31, 2018.

The Company’s current forecast for the three months ended March 31, 2018
and the year ended December 31, 2018 have been derived for internal
planning purposes and do not represent a projection of results for first
quarter or fiscal 2018. These planning estimates are subject to inherent
uncertainties and will change based on economic conditions in our
markets, our ability to realize expected savings from the sale of our
Americas business and a variety of other factors. Consequently, upon
publication of our unaudited results for first quarter 2018 and audited
results for fiscal 2018, we will likely report results that are
materially different from our current forecast. These estimates are for
information purposes only and should not be relied upon by any investors
for any investment decision.

This announcement contains information that prior to its disclosure may
have constituted inside information under European Union Regulation
596/2014 on market abuse.

About Coveris

As a leading international manufacturing company, Coveris is dedicated
to providing solutions that enhance the safety, quality and convenience
of products we use every day. In partnership with the most respected
brands in the world, Coveris develops vital products that protect
everything from the food we eat, to medical supplies, to the touch
screen device in our pockets, contributing to the lives of millions
every day.

Coveris is an affiliated portfolio company of Sun Capital Partners, Inc.

FORWARD-LOOKING STATEMENTS:

The information contained in this release may contain forward-looking
statements, estimates and projections. These statements involve elements
of subjective judgment and analysis and are based upon the best judgment
of Coveris as of the date hereof. These statements are subject to change
without notice and are based on a number of assumptions and entail known
and unknown risks and uncertainties, as there are a variety of factors
that may cause actual results and developments to differ materially from
any future results and developments expressed or implied by such
forward-looking statements. Therefore, you should not rely on these
forward-looking statements. Neither Coveris nor any other person gives
any undertaking, or is under any obligation, to update these
forward-looking statements for events or circumstances that occur
subsequent to the date of this release or to update or keep current any
of the information contained herein and this release is not a
representation by Coveris or any other person that they will do so,
except to the extent required by law.

Contacts

Coveris Holdings S.A.
Investor Contact:
Duane Owens,
864-641-4710
Treasurer
[email protected]
www.coveris.com