Kraton Corporation amended its existing senior secured term loan facility. JP Morgan, Deutsche Bank and Credit Suisse acted as joint lead arrangers and joint bookrunners on the transaction.
The amendment, among other things, included:
- Increased borrowing under the Euro-denominated tranche of the term loan facility by €150 million ($185.031 million) to €315 million ($388.565 million)
- A re-priced Euro tranche from EURIBOR plus 2.50% to EURIBOR plus 2.00%, with a 0.75% floor, and re-priced the U.S. dollar denominated tranche of the term loan facility from LIBOR plus 3.00% to LIBOR plus 2.50%, with a 1.00% floor
- An extension of the maturity date of the facility from January 6, 2022 to March 8, 2025.
Proceeds from the additional borrowings under the Euro tranche, plus available cash on hand, were used prepay $185 million of the then outstanding $485 million balance under the USD tranche.
“The success of this most recent refinancing reflects the ongoing optimization of our capital structure and credit profile. The refinancing represents annualized cash interest savings of approximately $5.9 million,” said Stephen E. Tremblay, Kraton executive vice president and CFO. “We are focused on other near-term opportunities to improve our capital structure and we remain fully-committed to closing fiscal year 2018 with our consolidated net debt leverage below four turns.”