HOUSTON, April 15, 2020 /PRNewswire/ -- Kraton Corporation
(NYSE: KRA), a leading global producer of specialty polymers and
high-value biobased products derived from pine wood pulping
co-products, today announced a two year extension of its senior
secured asset-based revolving credit facility ("ABL Facility"),
with an aggregate commitment of up to $250
million. Availability under the 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.
"Kraton continues to have a strong liquidity position, with its
available cash on hand and significant borrowing base availability
under the $250 million ABL Facility,"
said Atanas H. Atanasov, Kraton's
Senior Vice President and Chief Financial Officer. The
extension of the ABL Facility maturity date to January of 2023
further strengthens Kraton's liquidity position and financial
flexibility, and was extended with no significant change in terms
and a modest price increase of 50 basis points in the
borrowing margin for amounts outstanding under the facility while
improving borrowing base advance rates. We thank our bank group and
appreciate their support and 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 and liquidity
position 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