Kraton collects tenders for $157.49 million of 10½% notes due 2023

By Susanna Moon

Chicago, May 21 – Kraton Corp. said holders had tendered $157,491,000 of the $440 million of outstanding 10½% senior notes due 2023 in the offer that ended at 5 p.m. ET on May 18.

As announced May 14, the company’s subsidiaries Kraton Polymers LLC and Kraton Polymers Capital Corp. were tendering for the notes at a price of $1,107.66 per $1,000 principal amount plus accrued interest up to but excluding the settlement date.

Another $839,000 of the notes were tendered under guaranteed delivery procedures, according to a company update on Monday.

The issuers plan to accept for purchase all the tendered notes concurrently with the closing of the 5¼% senior notes due 2026 and the borrowings by Kraton LLC of another dollar-denominated term loan under the company's senior secured term loan facility, which are expected to occur on May 24, the release added.

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.

© 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.