Kraton Polymers gets $1.35 billion term loan, $250 million revolver

By Wendy Van Sickle

Columbus, Ohio, Jan. 6 – Kraton Polymers LLC obtained a $1.35 billion senior secured first-lien term loan facility and a $250 million five-year asset-based revolving credit facility, according to a press release.

The six-year term loan facility was issued at a price of 97. It will bear interest at Libor plus 500 basis points with a 1% Libor floor.

The revolver replaced the company’s former senior secured credit facilities. The company drew $37 million under the revolving facility at closing.

Proceeds of the term loan and revolver were used in the company’s $1.37 million acquisition of all of the outstanding shares of capital stock of Arizona Chemical Holdings Corp. and for Kraton’s cash tender offer and redemption of all of its outstanding 6¾% senior notes due 2019.

Joint lead arrangers and bookrunners of both facilities were Credit Suisse, Nomura Securities International, Inc. and Deutsche Bank Securities Inc. Credit Suisse served as administrative agent for first-lien term loan and Bank of America, NA as administrative agent for the revolver.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers. Arizona Chemical is a Jacksonville, Fla.-based biorefiner of pine chemicals.

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