Bank of America increased Kraton’s asset-based revolver by $50 million and extended the maturity date from January 2023 to December 2025.

Availability under the amended ABL facility is subject to a borrowing base, which is supported by inventory and receivables. The facility has a $100 million uncommitted accordion feature, which, subject to satisfaction of specific terms and conditions, would provide for increased availability under the credit facility.

Terms of the amended ABL facility reflect a 50 basis point reduction in the borrowing margin along with a 75 basis point decrease in floor rate for amounts outstanding and borrowed under the facility.

The amendment also provides for a 12.5 basis point reduction in the unused line fee for available committed amounts with no outstanding borrowings under the facility.

“The newly-secured five year term on our ABL facility provides Kraton with long-term access to liquidity, while the increased borrowing availability and improved pricing for amounts outstanding under the facility further enhances our overall financial flexibility,” Atanas H. Atanasov, executive vice president and CFO at Kraton, said. “We are grateful to our bank group for their continued support and their ongoing confidence in Kraton.”

The ABL facility is provided by a syndicate of banks, with Bank of America serving as administrative agent, collateral agent and security trustee.