Platform Specialty Products Corporation Completes Repricing and Extension of $1.95 Billion of Existing Term Loans
October 17 2016 - 7:00AM
Platform Specialty Products Corporation (NYSE:PAH) ("Platform"), a
global specialty chemicals company, today announced that it has
successfully completed the repricing, extension and amendment of
certain existing term loans under its credit agreement.
This refinancing, by creating a new USD $1,475 million B-4
tranche of term loans and a new €433 million C-3 Euro tranche of
term loans, extended the maturity date of existing term loan
tranches USD B-1, USD B-2 and EUR C-1, representing more than half
of Platform’s existing term loan debt, by another three years from
2020 to 2023. This amendment also shifted $165 million from the USD
term loans to the Euro term loans allowing Platform to further
optimize its foreign currency exposure. This repricing resulted in
a 50 basis points reduction in the interest rate (to 4.00% per
annum plus the applicable LIBOR rate) for the new USD tranche and
75 basis points reduction (to 3.75% per annum plus the applicable
EURIBOR rate) for the new Euro tranche, each as calculated as set
forth in the credit agreement.
Commenting on the amendment, Rakesh Sachdev, Platform’s Chief
Executive Officer stated, “We are pleased with the confidence the
debt market has placed in Platform which reflects significant
strides in recent months to improve our balance sheet. This
amendment provides us with further capital planning flexibility by
extending these term loans by another three years. Additionally,
the reduction in interest rates is expected to result in annual
interest savings of approximately $11 million, creating additional
operating cash flow for the company. We remain committed to further
improving our balance sheet in a way that is friendly for all
stakeholders.”
To effect the refinancing, the proceeds of the newly-created
term loan tranches were used to concurrently prepay in full the
existing term loan tranches USD B-1, USD B-2 and EUR C-1, which
were not subject to a call premium. The extended maturity date of
the new term loans is June 7, 2023 (from June 7, 2020 originally).
However, in the event that Platform has not refinanced in full its
6.50% USD senior notes due February 2022 by November 2, 2021 in
accordance with the terms of its credit agreement, the maturity
date of the new term loans will become November 2, 2021.
Barclays, Credit Suisse, Citibank and Nomura were acting as
Joint Lead Arrangers.
About Platform
Platform 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 agricultural, animal health,
electronics, graphic arts, plating, and offshore oil and gas
production and drilling. More information on Platform is available
at www.platformspecialtyproducts.com.
Forward-Looking Statements
Certain statements contained in this release are intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995 as it contains
"forward-looking statements" within the meaning of the federal
securities laws, which include statements regarding further
capital planning flexibility, annual interest savings and
additional operating cash flow. These projections and statements
are based on management's estimates and assumptions with respect to
future events and financial performance, and are believed to be
reasonable, though are inherently difficult to predict.
Actual results could differ materially from those projected as a
result of certain factors. A discussion of factors that could
cause results to vary is included in Platform's periodic and other
reports filed with the Securities and Exchange Commission,
including Platform's annual report on Form 10-K for the fiscal year
ended December 31, 2015 and quarterly reports on Form 10-Q for the
three months ended March 31, 2016 and June 30, 2016. Platform
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
CONTACT:
Investor Relations Contact:
Carey Dorman
Director – Corporate Development
Platform Specialty Products Corporation
1-561-406-8465
Media Contact:
Liz Cohen
Weber Shandwick
1-212-445-8044
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