HOUSTON, March 8, 2018 /PRNewswire/ — Kraton Corporation (NYSE: KRA) (the “Company”) and certain of its wholly owned subsidiaries today announced the closing of an amendment to its existing senior secured term loan facility (“Term Loan Facility”) that:

• increased borrowing under the Euro-denominated tranche of the Term Loan Facility (the “Euro Tranche”) by 150 million Euros to 315 million Euros;
• re-priced the Euro Tranche from EURIBOR plus 2.50% to EURIBOR plus 2.00%, with a 0.75% floor, and re-priced the U.S. dollar denominated tranche of the Term Loan Facility from LIBOR plus 3.00% to LIBOR plus 2.50%, with a 1.00% floor; and
• extended the maturity date of the Term Loan Facility from January 6, 2022 to March 8, 2025.

Proceeds from the additional borrowings under the Euro Tranche, plus available cash on hand, were used prepay $185 million of the then outstanding $485 million balance under the USD Tranche.

“The success of this most recent refinancing reflects the ongoing optimization of our capital structure and credit profile. the refinancing represents annualized cash interest savings of approximately $5.9 million,” said Stephen E. Tremblay, the Company’s Executive Vice President and Chief Financial Officer. “We are focused on other near-term opportunities to improve our capital structure and we remain fully-committed to closing fiscal year 2018 with our consolidated net debt leverage below four turns,” said Tremblay.

J.P. Morgan, Deutsche Bank, and Credit Suisse were joint lead arrangers and joint bookrunners for the transaction.