HOUSTON, Dec. 3, 2020 /PRNewswire/ — Kraton Corporation (NYSE: KRA), a leading global Sustainable producer of specialty polymers and high-value biobased products derived from pine wood pulping co-products, today announced that it has entered into an amendment to its senior secured asset-based revolving credit facility (“ABL Facility”). the amendment extends the maturity date of the ABL Facility from January 2023 to December 2025 and provides for a $50 million increase in aggregate commitment to $300 million. Availability under the amended ABL Facility is subject to a borrowing base, supported by inventory and receivables. the ABL Facility has a $100 million uncommitted accordion feature which, subject to satisfaction of specific terms and conditions, would provide for increased availability under the credit facility. Although general terms and conditions of the ABL Facility have not changed, terms of the amended ABL Facility reflect a 50 Basis point reduction in the borrowing margin along with a 75 Basis point decrease in floor rate for amounts outstanding and borrowed under the facility. the amendment also provides for a 12.5 Basis point reduction in the unused line fee for available committed amounts with no outstanding borrowings under the facility.

“The newly-secured five year term on our ABL Facility provides Kraton with long-term access to liquidity, while the increased borrowing availability and improved pricing for amounts outstanding under the facility further enhances our overall financial flexibility,” said Atanas H. Atanasov, Kraton’s Executive Vice President and Chief Financial Officer. “We are grateful to our bank group for their continued support and their ongoing confidence in Kraton.”

The ABL Facility is provided by a syndicate of banks with Bank of America, N.A. as Administrative Agent, Collateral Agent and Security Trustee.