HOUSTON, Dec. 3, 2020 /PRNewswire/ -- Kraton Corporation
(NYSE: KRA), a leading global sustainable producer of specialty
polymers and high-value biobased products derived from pine wood
pulping co-products, today announced that it has entered into an
amendment to its senior secured asset-based revolving credit
facility ("ABL Facility"). The amendment extends the maturity date
of the ABL Facility from January 2023
to December 2025 and provides for a
$50 million increase in aggregate
commitment to $300 million.
Availability under the amended ABL Facility is subject to a
borrowing base, supported by inventory and receivables. The
ABL Facility has a $100 million
uncommitted accordion feature which, subject to satisfaction of
specific terms and conditions, would provide for increased
availability under the credit facility. Although general
terms and conditions of the ABL Facility have not changed, terms of
the amended ABL Facility reflect a 50 basis point reduction in the
borrowing margin along with a 75 basis point decrease in floor rate
for amounts outstanding and borrowed under the facility. The
amendment also provides for a 12.5 basis point reduction in the
unused line fee for available committed amounts with no outstanding
borrowings under the facility.
"The newly-secured five year term on our ABL Facility provides
Kraton with long-term access to liquidity, while the increased
borrowing availability and improved pricing for amounts outstanding
under the facility further enhances our overall financial
flexibility," said Atanas H.
Atanasov, Kraton's Executive Vice President and Chief
Financial Officer. "We are grateful to our bank group for
their continued support and their ongoing confidence in
Kraton."
The ABL Facility is provided by a syndicate of banks with Bank
of America, N.A. as Administrative Agent, Collateral Agent and
Security Trustee.
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are often characterized by the use
of words such as "believes," "estimates," "expects," "projects,"
"may," "intends," "plans" or "anticipates," or by discussions of
strategy, plans or intentions. The statements in this press
release that are not historical statements, including statements
regarding the Company's financial flexibility are forward-looking
statements. All forward-looking statements in this press
release are made based on management's current expectations and
estimates, which involve known and unknown risks, uncertainties and
other important factors that could cause actual results to differ
materially from those expressed in forward-looking
statements. Additional information concerning factors that
could cause actual results to differ materially from those
expressed in forward-looking statements is contained in Kraton's
most recently filed annual report on Form 10-K, quarterly reports
on Form 10-Q and in other filings made by Kraton with the U.S.
Securities and Exchange Commission, and include, but are not
limited to, risks related to: Kraton's ability to repay or
re-finance its indebtedness; Kraton's reliance on third parties for
the provision of significant operating and other services; health
epidemics or pandemics such as COVID-19 (including governmental and
regulatory actions relating thereto); conditions in the global
economy and capital markets; fluctuations in raw material costs;
limitations in the availability of raw materials; competition in
Kraton's end-use markets; and other factors of which we are
currently unaware or deem immaterial. Readers are cautioned
not to place undue reliance on forward-looking statements.
Forward-looking statements contained herein speak only as of the
date of this press release, and we assume no obligation to publicly
update or revise such forward-looking statements in light of new
information or future events.
ABOUT KRATON
Kraton Corporation (NYSE "KRA") is a leading global producer of
specialty polymers and high-value performance products derived from
renewable resources. Kraton'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 and roofing 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
performance chemicals into markets that include fuel additives,
oilfield chemicals, coatings, metalworking fluids and lubricants,
inks and mining. Kraton offers its products to a diverse customer
base in over 70 countries worldwide. Kraton, the Kraton logo and
design are all trademarks of Kraton Corporation or its subsidiaries
or affiliates.
For Further Information:
H. Gene Shiels 281-504-4886
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SOURCE Kraton Corporation