Kraton Polymers tables term loan as primary conditions remain unfavorable

By Sara Rosenberg

New York, Dec. 21 – Kraton Polymers LLC officially decided to put syndication of its term loan on the back burner as a result of difficult market conditions, with the expectation being that the transaction will return to market next year, according to a market source.

The source added that the loan is currently expected to resurface in 2016.

Price talk on the term loan was Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 92, following revisions last week from talk of Libor plus 475 bps to 500 bps with a 1% Libor floor and a discount of 98.

The term loan was also talked with 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Nomura Securities International Inc. and Deutsche Bank Securities Inc. are leading the loan.

Proceeds will be used to help fund the $1.37 billion acquisition of Arizona Chemical Holdings Corp. from American Securities LLC and to refinance existing debt.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers. Arizona Chemical is a biorefiner of pine chemicals with executive offices in Jacksonville, Fla., and Almere, the Netherlands.

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