Kraton reprices, extends term loan, ups euro tranche to €315 million

By Wendy Van Sickle

Columbus, Ohio, March 8 – Kraton Corp. said it closed an amendment to its existing senior secured term loan facility, extending the maturity about three years to March 8, 2025, repricing both the dollar- and euro-denominated tranches and increasing borrowings under the euro tranche by about €150 million to €315 million.

The dollar tranche was repriced to Libor plus 250 basis points with a 1% Libor floor from Libor plus 300 bps, and the euro tranche to Euribor plus 200 bps with a 0.75% Euribor floor from Euribor plus 250 bps, according to a press release.

JPMorgan, Deutsche Bank and Credit Suisse were joint lead arrangers and joint bookrunners for the deal.

Proceeds from the additional borrowings under the euro tranche, plus available cash on hand, were used prepay $185 million of the then outstanding $485 million balance under the dollar tranche.

Prior to the amendment, the term loan was due on Jan. 6, 2022.

“The refinancing represents annualized cash interest savings of approximately $5.9 million,” Stephen E. Tremblay, the company's executive vice president and chief financial officer, said in the release. “We are focused on other near-term opportunities to improve our capital structure and we remain fully committed to closing fiscal year 2018 with our consolidated net debt leverage below four turns.”

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.