Kraton to launch $950 million equivalent term loan B on Monday

By Sara Rosenberg

New York, Nov. 5 – Kraton Corp. is set to hold a lender call at 11 a.m. ET on Monday to launch a $950 million equivalent U.S. and euro term loan B, according to a market source.

The U.S. and euro term loan B sizes are still to be determined, but the expectation is for a roughly €300 million euro tranche, the source said.

Goldman Sachs, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities, Wells Fargo Securities LLC, BNP Paribas Securities Corp., SMBC, BofA Securities Inc. and Mizuho are the arrangers on the deal.

Proceeds will be used to help fund the acquisition of the company by DL Chemical Co. Ltd. for $46.50 per share. The transaction has an enterprise value of about $2.5 billion.

Kraton will be financed on a stand-alone basis and will be a ring fenced, wholly owned non-guarantor subsidiary of DL Chemical, the source added.

Closing is expected in the first half of 2022, subject to customary conditions, including the receipt of stockholder and regulatory approvals.

Kraton is a Houston-based producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products. DL Chemical is a Korea-based petrochemical company.

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