MKS Instruments completed the repricing of its existing $3.6 billion secured tranche B term loan. The lenders have agreed to an amendment that results in a reduction of the interest rate for the tranche B term loans from SOFR plus a credit spread adjustment plus 275 basis points to SOFR plus 250 basis points. The repricing eliminated the credit spread adjustment applicable to SOFR borrowings of the tranche B term loans which previously added 10 basis points, 15 basis points, and 25 basis points to one-month, three-month and six-month interest periods, respectively.

Based on the current interest rate, the annualized non-GAAP interest expense savings from this repricing is $10.7 million.

“We are pleased with the market demand for our Term Loan B, and today’s actions are consistent with our long-standing track record of actively optimizing our capital structure, including reducing our interest expense through repricing,” Seth H. Bagshaw, EVP and CFO of MKS, said.

JP Morgan acted as the sole lead arranger and sole bookrunner for the tranche B term loan repricing.