Kraton shifts funds between U.S. and euro term loans, updates pricing

By Sara Rosenberg

New York, Aug. 8 – Kraton Corp. downsized its U.S. covenant-light term loan to $520 million from $606 million and upsized its euro covenant-light term loan to €260 million from €220 million, according to market sources.

Also, pricing on the U.S. term loan was reduced to Libor plus 300 basis points from talk of Libor plus 325 bps to 350 bps, and pricing on the euro term loan firmed at Euribor plus 250 bps, the low end of the Euribor plus 250 bps to 275 bps talk, sources said.

In addition, the issue price on the U.S. term loan was changed to 99.875 from par, the floor on the euro loan was cut to 0.75% from 1% and the issue price on the euro loan was set at par, the tight end of the 99.75 to par talk.

The U.S. term loan still has a 1% Libor floor, and both term loans still have 101 soft call protection for six months.

J.P. Morgan, Deutsche Bank, Credit Suisse and Bank of America Merrill Lynch are joint lead arrangers and joint bookrunners on the deal. Credit Suisse is the administrative agent.

Proceeds from the euro term loan will be used to repay a portion of the company’s existing U.S. term loan, and the U.S. term loan will be used to reprice the remaining amount under the U.S. term loan from Libor plus 400 bps with a 1% Libor floor.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.