HOUSTON, Feb. 2, 2011 /PRNewswire/ -- Kraton Polymers LLC
and Kraton Polymers Capital Corporation (together, the "Company"),
two subsidiaries of Kraton Performance Polymers, Inc. (NYSE: KRA)
(together with its subsidiaries including the Company, "Kraton"), a
leading global producer of styrenic block copolymers, announced
today that it intends to sell, subject to market and other
conditions, $200,000,000 aggregate
principal amount of senior notes due 2019 (the "Notes") in an
institutional private placement. The Notes will be unsecured and
will be guaranteed on a senior basis by Kraton Performance
Polymers, Inc. and all of Kraton Polymer LLC's wholly-owned
domestic subsidiaries.
The Company intends to use the net proceeds from the offering,
together with the proceeds from its $200,000,000 term loan under a new senior secured
credit facility and available cash, to refinance substantially all
of its existing indebtedness, to pay accrued and unpaid interest,
to pay related fees and expenses and to pay tender premiums with
respect to its existing indebtedness.
The Notes and related guarantees have not been registered under
the Securities Act of 1933, as amended (the "Securities Act"), or
any state securities laws. Accordingly, the Notes are being offered
and sold only to "qualified institutional buyers" (as defined in
Rule 144A under the Securities Act) and outside the United States to non-U.S. persons in
offshore transactions in accordance with Regulation S under the
Securities Act. Therefore, the Notes are subject to restrictions on
transferability and resale, and may not be transferred or resold
absent an effective registration statement or an applicable
exemption from such registration requirements of the Securities
Act.
This press release does not constitute an offer to sell or
solicitation of an offer to purchase with respect to, Notes or
other securities, nor shall there be any sale of the Notes in any
state or jurisdiction in which such offer, solicitation or purchase
would be unlawful prior to the registration or qualification under
the securities laws of any such jurisdiction.
ABOUT KRATON
Kraton Performance Polymers, Inc., through its operating
subsidiary Kraton Polymers LLC and its subsidiaries, is a leading
global producer of engineered polymers and one of the world's
largest producers of styrenic block copolymers (SBCs), a family of
products whose chemistry was pioneered by Kraton almost 50 years
ago. Kraton's polymers are used in a wide range of applications,
including adhesives, coatings, consumer and personal care products,
sealants and lubricants, and medical, packaging, automotive,
paving, roofing and footwear products. The company offers
approximately 800 products to more than 700 customers in over 60
countries worldwide, and is the only SBC producer with
manufacturing and service capabilities on four continents. Kraton
manufactures products at five plants globally, including its
flagship plant in Belpre, Ohio,
the most diversified SBC plant in the world, as well as plants in
Germany, France, Brazil and Japan. The plant in Japan is operated by an unconsolidated
manufacturing joint venture. For more information on the company,
please visit www.kraton.com .
Kraton, the Kraton logo and design, and the "Giving Innovators
their Edge" tagline are all trademarks of Kraton Polymers LLC.
Some of the statements in this press release and elsewhere
contain forward-looking statements. We may also make written or
oral forward-looking statements in our periodic reports on Forms
10-K, 10-Q and 8-K, in press releases and other written materials
and in oral statements made by our officers, directors or employees
to third parties. Statements that are not historical facts,
including statements about our beliefs and expectations, are
forward-looking statements. Forward-looking statements are often
characterized by the use of words such as "believes," "estimates,"
"expects," "projects," "may," "intends," "plans" or "anticipates,"
or by discussions of strategy, plans or intentions. Such
forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other important factors that could
cause the actual results, performance or our achievements, or
industry results, to differ materially from historical results, any
future results, or performance or achievements expressed or implied
by such forward-looking statements. There are a number of risks and
uncertainties that could cause our actual results to differ
materially from the forward-looking statements contained in this
press release and elsewhere. Further description of these risks and
uncertainties and other important factors are set forth under the
heading "Cautionary Statements Regarding Forward-Looking
Information" in our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2010, and in our
other filings with the Securities and Exchange Commission. These
risks and uncertainties include, but are not limited to, conditions
in the global economy and capital markets, our relationship with
service providers and raw materials suppliers and limitations on
the availability of raw materials we need to produce our
products.
(Logo:
http://photos.prnewswire.com/prnh/20100728/DA42514LOGO)
For Further
Information:
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Investors: H. Gene Shiels
281-504-4886
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Media:
Richard A. Ott 281-504-4720
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SOURCE Kraton Polymers LLC; Kraton Polymers Capital
Corporation