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German auto parts supplier Adler Pelzer is is weighing a private credit option as the company looks to refinance its €400m SSNs due 2027 and secure additional liquidity, according to 9fin sources.

Barclays is leading the deal and is marketing the private financing package to multiple direct lenders and institutional investors, the sources said. The structure under discussion includes a €650m unitranche facility alongside a €200m delayed draw term loan (DDTL), the sources added. Pricing on the unitranche is being discussed north of 600bp.

The size of the package — well above the current €400m bond — suggests Adler is seeking to fund additional corporate purposes, such as bolt-on acquisitions or the refinancing of some local facilities, the sources added.

Adler’s Japanese co-owner Hayashi Telempu, which holds roughly 28% of the group, could also participate in the new financing round, potentially increasing its investment if the private deal proceeds and use this opportunity to deepen its exposure, the sources said.

However, this move would be somewhat unexpected, as Telempu has already injected equity into the business to get over its expensive 2023 refinancing over the line — shareholders contributed €120m in the form of a subordinated loan to support the bond package.