HOUSTON, May 14, 2018 /PRNewswire/ — Kraton Corporation (NYSE: KRA) (the “Company”) today announced that Kraton Polymers LLC (“Kraton LLC”) and Kraton Polymers Capital Corporation, its wholly-owned subsidiaries (together, the “Issuers”), intend to offer ‚¬290.0 million in aggregate principal amount of senior notes due 2026 (the “Notes”), subject to market and customary conditions. the Notes will be general unsecured obligations of the Issuers and will be 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 senior credit facilities and outstanding senior notes.

The Company also announced its intention for Kraton LLC to borrow an additional $90.0 million in incremental U.S. dollar denominated term loans (the “Incremental Term Loans”) under the Company’s existing senior secured term loan facility (the “Term Loan Facility”) on terms substantially similar as the U.S. dollar denominated term loans currently outstanding under the Term Loan Facility.

The Company intends to use the net proceeds from the offering of the Notes and the borrowings of the Incremental Term Loans, together with borrowings under the Company’s existing asset-based revolving credit facility and/or cash on hand, to pay the consideration and accrued and unpaid interest in connection with the previously announced tender offer (the “Tender Offer”) for any and all of the Issuers’ outstanding 10.500% senior notes due 2023 (the “10.5% Notes”) and fees and expenses for the refinancing. In connection with the commencement of the Tender Offer, the Issuers intend to call for redemption any 10.5% Notes that remain outstanding following the Tender Offer.

The Notes and related subsidiary guarantees will be offered, and sold, to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside of the United States pursuant to Regulation S under the Securities Act. the offer and sale of the Notes and related guarantees have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws.

This press release does not constitute an offer to sell or the solicitation of an offer to purchase any of the foregoing securities, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation, sale or purchase would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

This press release also does not constitute an offer to purchase any of the 10.5% Notes or a notice of redemption under the optional redemption provisions of the indenture governing any series of notes.