Kraton Polymers relaunches $440 million 10½% seven-year notes; pricing Wednesday

By Paul A. Harris

Portland, Ore., March 16 – Kraton Polymers LLC and Kraton Polymers Capital Corp. relaunched their $440 million offering of 10½% senior notes due April 15, 2023 (B3/CCC+) on Wednesday, according to a syndicate source.

Pricing is set for Wednesday afternoon following a morning conference call with investors.

The relaunch comes more than two months after dealers converted $440 million of bridge loans into the notes at a reoffer price of 96.225 on Jan. 6. A $425 million notes offer had earlier been abandoned due to market conditions following an investor roadshow.

As with the earlier offer, the relaunch is being led by bookrunners Credit Suisse Securities (USA) LLC, Nomura and Deutsche Bank Securities Inc.

The notes will become callable after Oct. 15, 2018 at 107.875 and feature a three-year 40% equity clawback at 110.5.

Proceeds from the financing were used to help fund the acquisition of Arizona Chemical Holdings Corp.

The issuers are subsidiaries of Kraton Performance Polymers, Inc., a Houston-based producer of engineered polymers and styrenic block copolymers

Arizona Chemical is a Jacksonville, Fla.-based specialty chemicals company.

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