Platform Specialty Products, a global specialty chemicals company, completed the repricing of its existing USD B-5 and EUR C-4 term loan tranches, totaling $1.4 billion. These tranches were created in connection with Platform’s term loan repricing, which closed on December 6, 2016.

Credit Suisse, HSBC and Deutsche Bank acted as joint lead arrangers for this transaction.

This term loan repricing is the fourth to be completed since October 2016 and represents the second interest cost reduction on these specific borrowings under the credit agreement. The expected incremental annual interest savings is approximately $14 million as a result of this transaction.

Platform refinanced its USD B-5 and EUR C-4 term loan tranches by incurring a new $680 million USD B-7 term loan tranche and a new €630 million EUR C-6 term loan tranche.

Similar to the other re-pricings, Platform used the proceeds of the new term loan tranches to concurrently prepay in full the existing USD B-5 and EUR C-4 term loan tranches. This repricing resulted in a 100 basis point reduction in total interest rate across both the USD and Euro tranches, from a combination of reduced spread and reduced base rate floor. As part of this transaction, the EURIBOR floor on the EUR C-5 term loan tranche was reduced from 1.00% to 0.75%. Finally, this transaction also shifted approximately $76 million from EUR term loans to USD term loans.

West Palm Beach, FL-based Platform Specialty is a global, diversified producer of high-technology specialty chemicals and a provider of technical services. The business involves the formulation of a broad range of solutions-oriented specialty chemicals, which are sold into multiple industries, including automotive, agriculture, animal health, electronics, graphic arts, and offshore oil and gas production and drilling.