Kemet gives redemption notice for 10˝% notes due 2018 via term loan

By Susanna Moon

Chicago, May 1 – Kemet Corp. said it issued a call for its 10˝% senior notes due 2018 using proceeds of a new $345 million term loan credit facility.

The new seven-year term loan results in lower annual cash interest expenses, with interest expense savings of about $13 million annually, according to a company announcement.

Interest on the term loan is Libor plus 600 basis points.

“This refinancing gives us significant annual cash interest expense savings, and also provides us with the financial and operating flexibility to achieve our long-term growth objectives,” Per Loof, the company’s chief executive officer, said in the press release.

The company said on Aug. 3, 2016 that it had repurchased $2 million of its 10˝% notes on May 10 for $1.9 million, which left $353 million of the notes outstanding after the buyback.

Kemet is a Simpsonville, S.C., manufacturer of electronic capacitors.

© 2015 Prospect News.
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