Element Solutions Inc Completes Syndication of $1.15 Billion Term Loans and Reduces Debt Balance
18 Dezember 2023 - 10:15PM
Business Wire
Element Solutions Inc (NYSE:ESI) ("ESI"), a global and
diversified specialty chemicals company, announced that it
successfully completed the syndication of a seven-year secured term
loan credit facility totaling $1.15 billion under its credit
agreement.
ESI used the proceeds of the new $1,150 million term loan B-2
facility, together with cash on hand, to prepay its existing $1,105
million term loan B-1 tranche and $150 million term loan A.
Except for its maturity date, the new term loan B-2 tranche has
substantially the same terms as the former term loan B-1 tranche,
including its applicable interest rate of SOFR plus a spread of
2.00% per annum.
In connection with the funding of the new term loan B-2 tranche,
ESI monetized existing interest rate and cross-currency swap
agreements initially scheduled to mature in 2024 and 2026. ESI
subsequently entered into new interest rate and cross-currency swap
agreements, which effectively converted $760 million of the term
loan B-2 tranche, a U.S. dollar denominated debt obligation, into
fixed-rate euro-denominated debt at a fixed EUR all-in rate of
4.31%. These new swaps are set to mature in 2028. The balance of
$390 million remains subject to existing swaps scheduled to mature
in 2025.
Chief Financial Officer Carey Dorman said, “Through this
transaction, we are reducing gross debt by over $100 million and
extending the majority of our secured debt maturities to 2030
without increasing their margin. With our new swaps in place, we
now have approximately 80% of our capital structure fixed until
2028, effectively mitigating interest rate risk from the ongoing
higher rate environment. We have been working over the past year to
further improve our already healthy balance sheet and believe we
have made substantial progress.”
About Element Solutions Inc
Element Solutions Inc is a leading specialty chemicals company
whose businesses supply a broad range of solutions that enhance the
performance of products people use every day. Developed in
multi-step technological processes, these innovative solutions
enable customers' manufacturing processes in several key
industries, including consumer electronics, power electronics,
semiconductor fabrication, communication and data storage
infrastructure, automotive systems, industrial surface finishing,
consumer packaging and offshore energy. More information about the
company is available at www.elementsolutionsinc.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20231215217083/en/
Investor Relations Contact: Varun Gokarn Senior Director,
Strategy and Finance Element Solutions Inc 1-203-952-0369
IR@elementsolutionsinc.com
Media Contact: Scott Bisang / Ed Hammond / Tali Epstein
Collected Strategies 1-212-379-2072 esi@collectedstrategies.com
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