MKS Instruments Makes a Voluntary $50 Million Prepayment on its Term Loan
July 01 2019 - 9:00AM
MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of
technologies that enable advanced processes and improve
productivity, today announced that it has made a voluntary $50
million prepayment of principal on its secured term loan reducing
the outstanding principal to $947 million as of June 28, 2019, from
approximately $1 billion as of March 31, 2019.
“We are pleased to complete our ninth voluntary prepayment,
demonstrating our commitment to reduce our leverage and cost of
capital. Since loan origination in 2016, our pre-payments
have totaled $475 million, and this $50 million prepayment is the
first since we closed the acquisition of Electro Scientific
Industries, Inc. on February 1, 2019. Based upon current
interest rate, this prepayment reduces our annualized non-GAAP
interest expense by approximately $2.3 million,” said Seth H.
Bagshaw, Senior Vice President and Chief Financial Officer.
About MKS Instruments
MKS Instruments, Inc. is a global provider of instruments,
subsystems and process control solutions that measure, monitor,
deliver, analyze, power and control critical parameters of advanced
manufacturing processes to improve process performance and
productivity for our customers. Our products are derived from our
core competencies in pressure measurement and control, flow
measurement and control, gas and vapor delivery, gas composition
analysis, residual gas analysis, leak detection, control
technology, ozone generation and delivery, power, reactive gas
generation, vacuum technology, lasers, photonics, sub-micron
positioning, vibration control, optics and laser-based
manufacturing solutions. We also provide services relating to the
maintenance and repair of our products, installation services and
training. Our primary served markets include semiconductor,
industrial technologies, life and health sciences, research and
defense. Additional information can be found
at www.mksinst.com.
Use of Non-GAAP Financial Measure
Non-GAAP interest expense excludes amortization of debt issuance
costs. This non-GAAP measure is not in accordance with U.S.
Generally Accepted Accounting Principles (GAAP). MKS
management believes the presentation of this non-GAAP financial
measure is useful to investors for comparing prior periods and
analyzing ongoing business trends and financial results. On
an annualized basis, GAAP interest savings, at current interest
rate, is approximately $2.6 million, which includes $0.3 million of
amortization of deferred financing costs.
Forward-Looking Statements
This release contains a forward-looking statement within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27 of the Securities Act, and Section 21E of the Securities
Exchange Act regarding MKS' interest expense. This statement
is only a prediction. Actual events or results may differ
materially from those in the forward-looking statement set forth
herein. Readers are referred to MKS' filings with
the Securities and Exchange Commission, including its most
recent Annual Report on Form 10-K and any subsequent Quarterly
Reports on Form 10-Q for a discussion of these and other important
risk factors concerning MKS and its operations. MKS is under
no obligation to, and expressly disclaims any obligation to, update
or alter its forward-looking statements, whether as a result of new
information, future events or otherwise.
Company Contact: Seth H. BagshawSenior Vice President,
Chief Financial Officer and TreasurerTelephone:
978.645.5578Email: seth_bagshaw@mksinst.com
Investor Relations Contacts: Monica GouldThe Blueshirt
GroupTelephone: 212.871.3927Email:
monica@blueshirtgroup.com
Lindsay Grant SavareseThe Blueshirt GroupTelephone:
212.331.8417Email: lindsay@blueshirtgroup.com
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