Element Solutions Inc Announces Pricing and Syndication of Add-On to Existing Term Loan B
June 23, 2021 at 05:13 pm EDT
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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.
Element Solutions Inc is a global and diversified specialty chemicals company whose businesses supply a broad range of solutions. The Companyâs segments include Electronics and Industrial & Specialty. The Electronics segment research, formulates and sells specialty chemicals and process technologies for all types of electronics hardware, from complex printed circuit board designs to advanced semiconductor packaging. The Industrial & Specialty segment research, formulates and sells specialty chemicals and process technologies that enhance surfaces or improve industrial processes in diverse industrial sectors from automotive trim to transcontinental infrastructure and from high-speed printing to high-design faucets. Its solutions enable customers manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing, and others.