Kraton announces $200 million offering of eight-year senior notes

By Paul A. Harris

Portland, Ore., Jan. 25 - Kraton Polymers LLC intends to sell $200 million of eight-year senior notes, according to an 8-K document which the company filed on Tuesday with the Securities and Exchange Commission.

No timing has been announced, nor have any underwriters stepped forward to claim the deal thus far, market sources said.

Meanwhile the Houston-based chemical company held a bank meeting on Tuesday to launch a proposed $350 million five-year senior secured credit facility.

Bank of America, Morgan Stanley, Goldman Sachs, Credit Suisse and Macquarie are leading the bank deal.

Proceeds from both the bonds and the credit facility will be used to refinance existing debt, including senior notes, discount notes and term loan debt due in 2013 and 2014.

Refinancing the capital structure at this time takes advantage of an attractive low cost rate environment, extends the company's maturity profile to 2016 and 2019, and brings a significant liquidity enhancement from an $80 million cash flow revolver, according to the 8-K.

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