MKS Instruments Completes Repricing and Makes a $110 Million Voluntary Prepayment on its Secured Term Loan B
July 23 2024 - 8:00AM
MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling
technologies that transform our world, announced today that it
successfully completed the repricing of its $2.6 billion and €0.8
billion secured tranche B term loans maturing in 2029. The
repricing results in a reduction of the interest rate for the USD
tranche B term loans from SOFR plus a margin of 250 basis points to
SOFR plus 225 basis points and EUR tranche B term loans from
EURIBOR plus a margin of 300 basis points to EURIBOR plus 275 basis
points.
In addition, immediately prior to the repricing,
MKS made a voluntary prepayment of $110 million on its secured
tranche B term loans, consisting of $69 million to the USD Term
Loan B and €38 million to the EUR Term Loan B.
Based on the current interest rates, the
annualized cash interest savings from the combined actions is
approximately $17 million.
“We are pleased with the results of our Term
Loan B repricing and today’s actions are consistent with our
long-standing track record of proactively seeking opportunities to
reduce costs and maximize free cash flow to repay debt,” said John
T.C. Lee, President and Chief Executive Officer.
JPMorganChase, Barclays, BofA Securities.,
Citibank, N.A., HSBC Securities (USA) Inc., Mizuho, Morgan Stanley
Senior Funding, Inc, and PNC Capital Markets LLC acted as the joint
lead arrangers and joint bookrunners for the tranche B term loan
repricing.
About MKS Instruments
MKS Instruments enables technologies that
transform our world. We deliver foundational technology solutions
to leading edge semiconductor manufacturing, electronics and
packaging, and specialty industrial applications. We apply our
broad science and engineering capabilities to create instruments,
subsystems, systems, process control solutions and specialty
chemicals technology that improve process performance, optimize
productivity and enable unique innovations for many of the world's
leading technology and industrial companies. Our solutions are
critical to addressing the challenges of miniaturization and
complexity in advanced device manufacturing by enabling increased
power, speed, feature enhancement, and optimized connectivity. Our
solutions are also critical to addressing ever-increasing
performance requirements across a wide array of specialty
industrial applications. Additional information can be found
at www.mks.com.
SAFE HARBOR FOR FORWARD-LOOKING
STATEMENTS
This press release contains a forward-looking
statement within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27 of the Securities Act, and Section
21E of the Securities Exchange Act regarding MKS’ cash interest
savings. This statement is only a prediction based on current
assumptions and expectations. Actual events or results, including
changes in interest rates, may differ materially from those in the
forward-looking statement set forth herein. Readers are referred to
MKS' filings with the Securities and Exchange Commission, including
its most recent Annual Report on Form 10-K and any subsequent
Quarterly Reports on Form 10-Q for a discussion of these and other
important risk factors concerning MKS and its operations. MKS is
under no obligation to, and expressly disclaims any obligation to,
update or alter its forward-looking statements, whether as a result
of new information, future events or otherwise.
Company Contact:Paretosh MisraVice President, Investor
RelationsTelephone: (978) 284-4705 Email:
paretosh.misra@mksinst.com
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