HOUSTON, March 17, 2017 /PRNewswire/ -- Kraton
Corporation (NYSE: KRA) ("Kraton") announced today that
Kraton Polymers LLC and Kraton Polymers Capital Corporation, its
wholly-owned subsidiaries (together, the "Issuers"), priced
$400 million in aggregate principal
amount of 7.000% senior notes due 2025 (the "Notes") issued at par
in connection with their previously announced private offering. The
Notes will be general unsecured obligations of the Issuers, and
will be guaranteed by Kraton and each of the Issuers' wholly-owned
domestic subsidiaries that guarantee Kraton's existing senior
secured term loan facility, existing senior secured asset backed
loan facility and existing 10.500% senior notes due 2023. The
offering is expected to close on March 24,
2017, subject to customary closing conditions.
Kraton Polymers LLC intends to use the net proceeds from the
offering to repay a portion of the outstanding borrowings under its
existing senior secured term loan facility.
The Notes will be offered, and sold, to persons reasonably
believed to be qualified institutional buyers in the United States pursuant to Rule 144A under
the Securities Act of 1933, as amended (the "Securities Act"), and
to persons outside of the United
States pursuant to Regulation S under the Securities Act.
The offer and sale of the Notes, and related guarantees, have not
been, and will not be, registered under the Securities Act or any
state securities laws and may not be offered or sold in
the United States absent
registration or an applicable exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act
and applicable state laws.
This press release does not constitute an offer to sell or
the solicitation of an offer to purchase any of the foregoing
securities, nor shall there be any sale of the securities in any
state or jurisdiction in which such offer, solicitation, sale or
purchase would be unlawful prior to the registration or
qualification under the securities laws of any such
jurisdiction.
FORWARD LOOKING STATEMENTS
Some of the statements in this press release contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. This press release
includes forward-looking statements that reflect our plans,
beliefs, expectations, and current views with respect to, among
other things, future events and financial performance.
Forward-looking statements are often characterized by the use of
words such as "outlook," "believes," "target," "estimates,"
"expects," "projects," "may," "intends," "plans," "on track," or
"anticipates," or by discussions of strategy, plans or
intentions.
All forward-looking statements in this press release, including
statements regarding completion of the offering of the Notes, are
made based on management's current expectations and estimates,
which involve known and unknown risks, uncertainties, and other
important factors that could cause actual results to differ
materially from those expressed in forward-looking statements.
These risks and uncertainties are more fully described in our
latest Annual Report on Form 10-K, including but not limited to
"Part I, Item 1A. Risk Factors" and "Part II, Item 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operations" therein, and in our other filings with the Securities
and Exchange Commission, and include, but are not limited to, risks
related to: Kraton's expected closing date for the offering of the
Notes; Kraton's financing plans and use of proceeds of the offering
of the Notes; the integration of Arizona Chemical (now, AZ
Chem Holdings LP); Kraton's ability to repay its indebtedness and
risks associated with incurring additional indebtedness; Kraton's
reliance on third parties for the provision of significant
operating and other services; conditions in, and risks associated
with operating in, the global economy and capital markets;
fluctuations in raw material costs; limitations in the availability
of raw materials; competition in Kraton's end-use markets; and
other factors of which we are currently unaware or deem immaterial.
Readers are cautioned not to place undue reliance on our
forward-looking statements. Forward-looking statements speak only
as of the date they are made, and we assume no obligation to update
such information in light of new information or future events.
For Further Information:
H. Gene Shiels 281-504-4886
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SOURCE Kraton Corporation