Trinseo, a specialty material solutions provider, obtained $1.077 billion in aggregate principal amount of secured term loan financing arranged by Angelo, Gordon & Co and Oaktree Capital Management, with funds managed by Angelo Gordon, Oaktree and Apollo Global Management as lenders. Proceeds will be used to refinance the entirety of the Company’s outstanding 2024 term loan and $385 million of its existing $500 million 2025 Senior Notes.

Key Terms of the New Term Loan Facility include:

  • $1.077 billion of aggregate new principal amount for net cash proceeds of $1.045 billion
  • Annual cash interest rate of SOFR + 8.50%
  • Option to elect partial payment-in-kind (PIK) interest for up to 24 months at an annual cash interest rate of SOFR + 4.25% and a PIK interest rate of 5.25%
  • Call protections of a customary make-whole from months 0 to 18; 3.0% from months 18 to 30; 2.0% from months 30 to 42; par thereafter
  • Final maturity date of May 3, 2028

“We are very pleased with this transaction as it addresses the entirety of our 2024 debt maturity and over 75% of our debt maturing in 2025,” Frank Bozich, president and CEO of Trinseo, said. “The financing process was very competitive, a testament to investors’ strong belief in the long-term outlook for the business. We welcome the support and partnership from leading investors Oaktree, Angelo Gordon and Apollo.”

“I want to thank our employees, customers and suppliers for their partnerships in managing through the current challenging demand environment,” Bozich said. “With our nearest-term maturity now addressed, we will continue to progress on our transformation while developing value-added solutions for our customers and creating long-term value for our shareholders.”

“We are delighted to be a capital partner to Trinseo and have the opportunity to help strengthen its balance sheet by refinancing the majority of its near-dated maturities,” Joseph Lenz, managing director at Angelo Gordon, said.

“We appreciate the opportunity to work with Frank, David and the full Trinseo team to provide a capital structure solution to allow Trinseo to focus on its leading position in the styrene derivative and PMMA value chains and on innovative polymer recycling technologies,” Brook Hinchman, managing director at Oaktree, said.

Centerview Partners acted as financial advisor and Ropes & Gray acted as legal counsel to Trinseo on this transaction. Paul Hastings acted as legal counsel to Oaktree, Angelo Gordon and Apollo.