Kraton tenders for 10˝% senior notes due 2023, to call remainder

New York, May 14 – Kraton Corp. announced that its subsidiaries Kraton Polymers LLC and Kraton Polymers Capital Corp. have begun a tender offer for all of their $440 million of outstanding 10˝% senior notes due 2023.

The companies will pay $1,107.66 per $1,000 principal amount for the notes plus accrued interest up to but excluding the settlement date, according to a news release.

The tender ends at 5 p.m. ET on May 18 and settlement is planned for May 25.

Funding for the offer will come from the sale of new senior notes, additional term loans under the company’s senior secured credit facility and borrowings from the existing asset-based revolving credit facility.

Completion of the new financings is a condition to the closing of the tender.

Any notes not purchased in the offer will be redeemed on June 13 using the make-whole call provision.

J.P. Morgan Securities LLC (212 270-9375 or 866 834-4666) and Credit Suisse Securities (USA) LLC (212 538-2147 or 800 820-1653) are dealer managers. D.F. King & Co., Inc. (877 361-7966, 212 269-5550 or kra@dfking.com) is information agent and tender agent.

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

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