Kraton upsizes revolver to $200 million, trims A loan to $150 million

By Sara Rosenberg

New York, Feb. 4 - Kraton Polymers LLC increased its revolving credit facility to $200 million from $150 million and decreased its term loan A to $150 million from $200 million, according to a market source.

The entire $350 million five-year senior secured credit facility (Ba3/BB+) is being talked at Libor plus 325 basis points with no Libor floor.

Bank of America, Morgan Stanley, Goldman Sachs, Credit Suisse and Macquarie are the lead banks on the deal, with Bank of America the left lead.

Financial covenants include a consolidated net leverage ratio, a consolidated net interest coverage ratio and maximum capital expenditures.

Proceeds from the facility, along with $250 million of eight-year senior unsecured notes upsized from $200 million, will be used to refinance existing debt, including senior notes, discount notes and term loan debt due in 2013 and 2014.

Kraton Polymers is a Houston-based producer of styrenic block copolymers for use in industrial and consumer applications.

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