Kraton Polymers launches $878 million term loan B to investors

By Sara Rosenberg

New York, Feb. 4 – Kraton Polymers LLC held a lender call at 2 p.m. ET on Thursday to launch an $878 million senior secured term loan B (Ba3/B+) due Jan. 6, 2022 talked at Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 92, according to a market source.

The loan has 101 soft call protection through Jan. 6, 2017 and a senior secured net leverage test.

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

Commitments are due on Feb. 12, the source said.

The loan originally came to market last year at talk of Libor plus 475 bps to 500 bps with a 1% Libor floor and a discount of 98, and then pricing was revised to Libor plus 500 bps with a 1% Libor floor and an original issue discount of 92 before the deal was pulled in late December as a result of difficult market conditions.

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

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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