Kraton Corporation informed that Kraton Polymers LLC and Kraton Polymers Capital Corporation, its wholly-owned subsidiaries, priced their previously announced USD 400 million in aggregate principal amount of 7.000% senior notes due 2025 issued at par in connection with their previously announced private offering. The offering is expected to close on March 24, 2017, subject to customary closing conditions.
According to the announcement, 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.
Kraton 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.
Earlier Kraton increased prices for HSBC and SBS polymers from March 1, 2017.
About Kraton Corporation:
The company is a leading global producer of styrenic block copolymers, specialty polymers and high-value performance products derived from pine wood pulping co-products. The company’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. As the largest global provider in the pine chemicals industry, the company’s pine -based specialty products are sold into adhesive, road and construction and tire markets, and it produces and sells a broad range of chemical intermediates into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, flavors and fragrances and mining.