Element Solutions Inc. announced that it has reached agreement in principle on pricing and syndication for a $400 million add-on to its existing senior secured term loan B due 2026 (the “Add-On”), subject to certain conditions. The Add-On remains subject to the closing of the previously announced acquisition of Coventya Holding SAS (the “Coventya Acquisition”) and the finalization and execution of its definitive documentation. Proceeds from the Add-On will be used to finance a portion of the €420 million consideration for the Coventya Acquisition and transactions costs, fees and expenses related to this transaction and the Add-On, as well as for general corporate purposes. The funding of the Add-On is expected to close concurrently with the Coventya Acquisition, which closing remains subject to certain closing conditions. The Add-On will be fungible with the existing senior secured term loan B with a periodic interest rate identical to the interest rate of the existing term loan B, or LIBOR base rate plus a 2.00% spread. The Company is currently exploring opportunities to capture lower cash interest rates for some or all of the Add-On via derivative instruments.