MKS Instruments Completes Repricing of Secured Term Loan B
04 October 2023 - 7:30AM
MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling
technologies that transform our world, announced today that it
successfully completed the repricing of its existing $3.6 billion
secured tranche B term loan. The lenders have agreed to an
amendment that results in a reduction of the interest rate for the
tranche B term loans from SOFR plus a credit spread adjustment plus
275 basis points to SOFR plus 250 basis points. The repricing
eliminated the credit spread adjustment applicable to SOFR
borrowings of the tranche B term loans which previously added 10
basis points, 15 basis points, and 25 basis points to one-month,
three-month and six-month interest periods, respectively.
Based on the current interest rate, the annualized non-GAAP
interest expense savings from this repricing is $10.7 million.
“We are pleased with the market demand for our Term Loan B, and
today’s actions are consistent with our long-standing track record
of actively optimizing our capital structure, including reducing
our interest expense through repricing,” said Seth H. Bagshaw,
Executive Vice President and Chief Financial Officer.
JP Morgan acted as the sole lead arranger and sole bookrunner
for the tranche B term loan repricing.
About MKS InstrumentsMKS Instruments enables
technologies that transform our world. We deliver foundational
technology solutions to leading edge semiconductor manufacturing,
electronics and packaging, and specialty industrial applications.
We apply our broad science and engineering capabilities to create
instruments, subsystems, systems, process control solutions and
specialty chemicals technology that improve process performance,
optimize productivity and enable unique innovations for many of the
world's leading technology and industrial companies. Our solutions
are critical to addressing the challenges of miniaturization and
complexity in advanced device manufacturing by enabling increased
power, speed, feature enhancement, and optimized connectivity. Our
solutions are also critical to addressing ever-increasing
performance requirements across a wide array of specialty
industrial applications. Additional information can be found at
www.mks.com.
Use of Non-GAAP Financial MeasureNon-GAAP
interest expense savings excludes amortization of debt issuance
costs. This non-GAAP financial measure is not in accordance with
U.S. Generally Accepted Accounting Principles (“GAAP”). This
non-GAAP financial measure should be viewed in addition to, and not
as a substitute for, MKS’ reported results under GAAP, and may be
different from non-GAAP financial measures used by other companies.
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 expense savings, at the current
interest rate, is $10.3 million, which includes $0.3 million of
amortization of deferred financing costs.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTSThis
press 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 based on current assumptions and expectations.
Actual events or results, including changes in interest rates, 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: David RyzhikVice President, Investor
RelationsTelephone: (978) 557-5180Email:
david.ryzhik@mksinst.com
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