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Cerdia Completes $900 Million Senior Secured Notes Offering

10.03.24

Simpson Thacher represented Cerdia Finanz GmbH (“Cerdia”), indirectly controlled by The Blackstone Group Inc., in connection with a Rule 144A and Regulation S offering of $900 million in aggregate principal amount of 9.375% Senior Secured Notes due 2031 and the extension of its revolving credit facility. The offering closed on October 3, 2024.

The proceeds from the offering (among other sources) were used to (i) redeem in full Cerdia’s outstanding 10.50% senior secured notes due 2027, including payment of the applicable redemption premium and accrued and unpaid interest, (ii) fund a distribution to its shareholders and (iii) pay fees and expenses in connection with the transactions.

Cerdia is a leading global producer of filter tow and specialty filter tow products, serving a global customer base representing, primarily, the major tobacco multinational companies.

The Simpson Thacher team included Gil Strauss, Iakovos Anagnostopoulos, Julia Szinovatz and Busra Kakdas (Capital Markets); Andrew Bechtel, Charley Xu, William Choules and Tom Lort (Credit); and Meredith Jones, Michael Mann and Tova Wolovitz Pfeffer (U.S. Tax).