Kraton Polymers driving by with $400 million five-year notes; initial talk 4½%-4¾%

By Paul A. Harris

Portland, Ore., Dec. 7 – Kraton Corp. plans to price a $400 million offering of five-year senior notes (B2/BB-) in a Monday drive-by, according to market sources.

Initial guidance has the notes coming to yield 4½% to 4¾%, a trader said.

J.P. Morgan Securities LLC is the lead.

The Rule 144A and Regulation S notes come with two years of call protection.

The issuing entities will be wholly owned subsidiaries Kraton Polymers LLC and Kraton Polymers Capital Corp.

The Houston-based producer of styrenic block copolymers and specialty polymers plans to use the proceeds, together with cash on hand or borrowings under its asset-based revolver, to redeem of all of its outstanding 7% senior notes due 2025.

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