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Kraton Corporation Announces Intent to Initiate Term Loan Reprice, Maturity Extension and Euro Tranche Upsize

HOUSTON, Feb. 21, 2018 /PRNewswire/ -- Kraton Corporation (NYSE: KRA) (the "Company") and certain of its wholly owned subsidiaries announced today that, subject to market conditions, they intend to amend the existing senior secured term loan facility (the "Term Loan Facility") to:

  • reprice the existing term loans under the Term Loan Facility;
  • extend its maturity by approximately three years to March 2025; and
  • increase borrowings under the Euro denominated tranche of the Term Loan Facility by approximately $100 to $200 million.

The Company plans to use the proceeds from additional borrowings under the Euro denominated tranche to pay down a portion of the existing U.S. dollar denominated tranche under the Term Loan Facility.

The Company anticipates holding lender conference calls to discuss the financing on February 23, 2018. J.P. Morgan, Deutsche Bank, and Credit Suisse are joint lead arrangers and joint bookrunners for the financing.

FORWARD LOOKING STATEMENTS

Some of the statements in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release includes forward-looking statements that reflect our plans, beliefs, expectations, and current views with respect to, among other things, future events and financial performance. Forward-looking statements are characterized by the use of words such as "expects," "intends," "plans," or "anticipates."

All forward-looking statements in this press release, including statements regarding timing, completion, structure and results of the financing, 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. These risks and uncertainties are more fully described in our latest Annual Report on Form 10-K, including but not limited to "Part I, Item 1A. Risk Factors" and "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" therein, and in our other filings with the Securities and Exchange Commission, and include, but are not limited to, risks related to: the Company's expected timing and success of the financing; the Company's financing plans and use of proceeds of the additional Euro Tranche borrowings; the Company's ability to repay its indebtedness and risks associated with incurring additional indebtedness; the Company's reliance on third parties for the provision of significant operating and other services; conditions in, and risks associated with operating in, the global economy and capital markets; fluctuations in raw material costs; limitations in the availability of raw materials; competition in the Company'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 our forward-looking statements. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update such information in light of new information or future events.

For Further Information: 
H. Gene Shiels  281-504-4886

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SOURCE Kraton Corporation