Trinseo announces pricing of Senior Notes and term loans to finance the acquisition of Arkema’s PMMA business


BERWYN, PA – (BUSINESS WIRE) – Trinseo (NYSE: TSE), a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced the price of its bid of $ 450 million in gross proceeds of banknotes. senior maturing in 2029 (the “Notes”) by its subsidiaries Trinseo Materials Operating SCA and Trinseo Materials Finance, Inc. (together, the “Issuers”) and its $ 750 million of additional term loans expected to be available under the issuers’ existing senior secured credit facility (“Facility B term loan”). The net proceeds of the note offering and the B term loan, together with available cash, will be used to pay the purchase price of the previously announced acquisition of the polymethyl methacrylates (PMMA) and methacrylates business of methyl activated (MMA), through purchase. shares of certain Arkema SA subsidiaries (the “Acquisition”), in addition to the costs and charges relating to the offers and the Acquisition.

The Notes will bear interest at 5.125% and mature on April 1, 2029. The Issuers have been advised by the Principal Arrangers that they anticipate that the B Term Loan Facility will be fully subscribed. The B term loan facility will bear an interest rate of the London Interbank Offered Rate (“LIBOR”) plus 2.50%, subject to a LIBOR floor of 0.00%, and will mature in May. 2028. The commitments relating to Term Loan Facility B and the terms thereof (including the applicable interest rate) remain subject to the signing of final documentation relating to Term Loan Facility B, which is expected to occur concurrently with the closing of the acquisition.

Taking into account the impact of these offers, our estimated annual cash interest is expected to be approximately $ 83 million, based on the current LIBOR rate.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes. The Notes to be offered have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws and cannot be. offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. The Notes are offered only to persons reasonably considered to be qualified institutional buyers in the United States based on Rule 144A under the Securities Act and outside the United States only to non-US investors in accordance with Regulation S of the Securities Act .

About Trinseo

Trinseo (NYSE: TSE) is a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber that is focused on providing innovative, sustainable and value-creating products that are intrinsic to our daily lives. Trinseo is dedicated to making a positive impact on society by partnering with like-minded stakeholders and supporting our customers’ sustainability goals in a wide range of end markets including automotive, electronics consumer, household appliances, medical devices, packaging, footwear and rugs. , paper and cardboard, building and construction, and tires. Trinseo had net sales of approximately $ 3.0 billion in 2020, with 17 manufacturing sites worldwide and approximately 2,600 employees. For more information, please visit: www.trinseo.com.

Note on forward-looking statements

This press release may contain forward-looking statements, including, without limitation, statements regarding future plans, objectives, goals, projections, strategies, events or performance, and underlying assumptions. and other statements, which are not statements of historical fact or guarantees or assurances of future performance. Forward-looking statements can be identified by the use of words such as “expect”, “anticipate”, “want”, “can, or expressions of similar meaning. Forward-looking statements reflect management’s assessment of the information currently available and are based on our current expectations and assumptions regarding our B term loan facility and expected cost savings as a result of our refinancing transactions, as of now. the proposed acquisition; estimated and future operating results, business strategies, competitive position, industry environment and potential growth opportunities and cost synergies related to the acquisition, our business, the economy and under other future conditions. Because forward-looking statements relate to the future, they are subject to uncertainties, risks and changes in circumstances which are difficult to predict. Factors that could cause such a difference include, but are not limited to our inability to complete the Acquisition or meet closing conditions, including antitrust, works council and other regulatory approvals; the inability to obtain the necessary financing to finance the Acquisition and the impact of the substantial indebtedness to be contracted; costs associated with the acquisition; following the acquisition, our ability to successfully integrate the acquired businesses, generate expected cost savings and synergies, maintain customer relationships, retain key employees and grow the business profitably ; and the factors discussed in our Annual Report on Form 10-K, under Part I, Item 1A – “Risk Factors” and elsewhere in our other reports, documents and documents filed from time to time with the Securities and Exchange Commission of United States. As a result of these or other factors, our actual results may differ materially from those contemplated in forward-looking statements. Therefore, we caution you against relying on any of these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. We assume no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Previous Decatur Utilities will resume disconnections for non-payment
Next Encourage responsible credit for financially vulnerable consumers

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *