Kraton reduces debt by $469.9 million during first six months of 2016

By Angela McDaniels

Tacoma, Wash., July 27 – Kraton Performance Polymers Inc. prepaid its $350 million of 6¾% senior notes due 2019 and $72 million of its term loan debt during the first quarter and reduced its net debt by an additional $47.9 million during the second quarter, according to the company’s earnings release for the second quarter.

To fund the note prepayment, the company used a portion of the proceeds of the debt it issued in connection with its acquisition of Arizona Chemical Holdings Corp.

The term loan paydown was funded with proceeds from the sale of assets relating to the company’s compounding business.

The company ended the second quarter on June 30 with $1.74 billion of consolidated net debt. Among that debt were $1.28 billion of term loan debt and $440 million of 10½% notes due 2023.

Kraton Performance Polymers is a Houston-based producer of engineered polymers and styrenic block copolymers.

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