Kraton Polymers to launch $1.35 billion term loan B on Tuesday

By Sara Rosenberg

New York, Nov. 30 – Kraton Polymers LLC is scheduled to hold a bank meeting at 11 a.m. ET in New York on Tuesday to launch a $1.35 billion six-year senior secured term loan B, according to a market source.

Credit Suisse Securities (USA) LLC, Nomura Securities International Inc. and Deutsche Bank Securities Inc. are the leads on the deal.

The term loan B is talked with a 1% Libor floor and 101 soft call protection for one year, the source said.

Included in the B loan is a senior secured net leverage covenant, and amortization of 2.5% in 2016 and 5% per annum thereafter.

Commitments are due on Dec. 11, the source added.

Proceeds will be used to help fund the $1.37 billion acquisition of Arizona Chemical Holdings Corp. from American Securities LLC and to refinance existing debt.

Closing is expected in late 2015 or early 2016.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers. Arizona Chemical is a biorefiner of pine chemicals with executive offices in Jacksonville, Fla., and Almere, the Netherlands.

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