HOUSTON, Dec. 21, 2020 /PRNewswire/ — Kraton Corporation (NYSE: KRA) (the “Company”) today announced that Kraton Polymers LLC and Kraton Polymers Capital Corporation, its wholly-owned subsidiaries (together, the “Issuers”), have completed their previously announced offering of $400 million in aggregate principal amount of 4.25% Senior Notes due 2025 (the ” New Notes”). the New Notes are general unsecured obligations of the Issuers and are guaranteed by the Company and certain of the Issuers’ wholly-owned domestic subsidiaries that guarantee the U.S. dollar denominated borrowings under the Company’s existing asset-based revolving loan facility and outstanding senior notes.

The completion of the offering of the New Notes satisfies the conditions precedent to the previously announced redemption of all of the Issuer’s outstanding 7.000% Senior Notes due 2025 (the “7.0% Senior Notes”) on January 6, 2021. the net proceeds from the offering of the New Notes are being used, together with cash on hand, to fund the redemption and to pay related fees and expenses of the refinancing.

“We are extremely pleased to announce that we have completed the highly successful refinancing of our 7.0% senior notes. the transaction further enhances Kraton’s capital structure, and the 4.25% coupon on our new senior notes will provide for annual cash interest savings of approximately $11 million, benefitting cash generation and increasing financial flexibility,” said Atanas H. Atanasov, the Company’s Executive Vice President and Chief Financial Officer.

This press release does not constitute a notice of redemption under the optional redemption provisions of the indenture governing any series of notes.