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Kraton tenders, seeks consents for $350 million 6¾% notes due 2019
By Susanna Moon
Chicago, Dec. 1 – Kraton Polymers LLC said it began a tender offer for its $350 million of outstanding 6¾% senior notes due 2019 co-issued with Kraton Polymers Capital Corp.
Kraton also is soliciting consents to eliminate or modify most of the covenants, events of default and other provisions of the notes indenture, according to a company press release.
The total purchase price will be $1,028.50 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Dec. 14, the consent payment date, with settlement following on Dec. 16 for early tendered notes.
Holders who tender their notes after the consent deadline will receive the tender offer payment of $998.50 per $1,000 of notes, with settlement on Dec. 30.
The total amount includes a consent payment of $30.00 per $1,000 principal amount.
The tender offer will end at 11:59 p.m. ET on Dec. 29.
The company also will pay accrued interest up to but excluding the settlement date.
The company said it expects to fund the offer using proceeds of a debt financing, along with cash on hand.
The tender offer is being made in connection with Kraton’s proposed acquisition of Arizona Chemical Holdings Corp.
The offer is conditioned on completion of the Arizona Chemical Acquisition and closing of the related debt financing.
Kraton said it plans to redeem any notes that remain outstanding on March 1 at 101.688% of par plus accrued interest to the redemption date.
D.F. King & Co., Inc. (212 269-5550, 866 796-7179 or kra@dfking.com) is the information agent. Credit Suisse Securities (USA) LLC (212 538-2147 or 800 820-1653) is the dealer manager and solicitation agent.
Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers. The company is a wholly owned subsidiary of Kraton Performance Polymers, Inc.
Arizona Chemical is a biorefiner of pine chemicals with executive offices in Jacksonville, Fla., and Almere, the Netherlands.
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