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Kraton closes $250 million five-year secured U.S., non-U.S. revolvers
By Marisa Wong
Madison, Wis., March 28 - Kraton Performance Polymers, Inc. said it closed $250 million of revolving credit facilities.
The facilities include a $150 million five-year secured U.S. revolver and a $100 million five-year secured non-U.S. revolver, according to a press release.
Availability will be subject to a borrowing base, and the facilities will be secured by receivables and inventory.
The facilities include a $100 million uncommitted accordion feature that could increase total availability to $350 million.
The new revolvers replace the company's $200 million revolver and bank term loan. An initial draw of $40 million under the new U.S. revolver was used, along with cash on hand, to repay the $82 million balance outstanding under the prior term loan.
"The favorable credit market conditions provided us with an opportunity to refinance our existing bank facility. We believe this new facility will provide greater financial flexibility while also lowering our cost of capital," Stephen E. Tremblay, Kraton's vice president and chief financial officer, said in the release.
Bank of America, NA is the administrative agent for the facilities; Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities, LLC and Wells Fargo Capital Finance, LLC are joint lead arrangers and joint book managers; JPMorgan Chase Bank, NA and Wells Fargo Bank, NA were co-syndication agents; and Barclays Bank plc is document agent. The syndication also included Siemens Financial Services, Inc. and HSBC Bank USA, NA.
Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers.
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