HOUSTON, Aug. 16, 2017 /PRNewswire/ -- Kraton
Corporation (NYSE: KRA) (the "Company") and certain of its wholly
owned subsidiaries today announced the closing of a €260 million
term loan priced at EURIBOR plus 2.50% with a 0.75% floor (the
"Euro Tranche"). Proceeds from the Euro Tranche were used prepay a
portion of the $886 million balance
outstanding under the Company's USD-denominated term loan facility
(the "USD Tranche"). Concurrent with the closing of the Euro
Tranche, the Company re-priced the remaining balance of the USD
Tranche. The new interest rate for the USD Tranche is LIBOR
plus 3.00% with a 1% floor, a 1% reduction from the previous
interest rate of LIBOR plus 4.00%.
"Since the closing of the Arizona Chemical acquisition in
January of 2016 we have worked diligently to improve our overall
capital structure. This transaction represents expected annual
cash interest savings of approximately $13
million, and in light of the Company's financial performance
and improved capital structure, we were able to eliminate the
financial maintenance covenant that existed under the Term Loan
facility," said Stephen E. Tremblay,
Kraton's Executive Vice President and Chief Financial Officer.
J.P. Morgan, Deutsche Bank, Credit Suisse, and Bank of America
Merrill Lynch were joint lead arrangers and joint bookrunners for
the transaction.
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 characterized by the use of words
such as "expects," "intends," "plans," or "anticipates".
All forward-looking statements in this press release, including
statements regarding anticipated benefits from the refinancing and
the Term Loan Facility, 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: anticipated benefits from the
refinancing and the Term Loan Facility; 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