Element Solutions Inc. Announces Pricing and Syndication of Add-On to Existing Term Loan B



MIAMI – () – Element Solutions Inc (NYSE: ESI) (“Element Solutions” or “Company”), a global and diversified specialty chemicals company, announced today that it has reached an agreement in principle to price and syndicate an additional $ 400 million. on an existing senior secured term loan B maturing in 2026 (the “Addendum”), subject to certain conditions. The supplement remains subject to the closure of the previously announced acquisition of Coventya Holding SAS (the “Coventya Acquisition”) and the completion and final documentation of it. The proceeds from the add-on will be used to fund part of the € 420 million reimbursement for the acquisition of Coventya and the transaction costs, fees and expenses associated with this transaction and add-on, as well as for general corporate purposes. Funding for the add-on is expected to complete concurrently with the acquisition of Coventya, the closure of which is subject to certain closure conditions.

President and CEO Benjamin Gliklich said: “We are pleased with the continued strong support of Element Solutions in the debt capital markets, which have provided capital at an attractive price to finance our growth. Following the closure of this funding, we will fully finance the upcoming acquisition of Coventya. The closing process continues at a pace and we look forward to further updates on this transaction in our second quarter 2021 income statement. ”

In connection with the acquisition of Coventya and the additional stake, Moody’s Investor Service and S&P Global Ratings have affirmed their corporate ratings at Ba2 and BB, and senior secured tranches at Ba1 and BBB-, respectively. The addition will be interchangeable with an existing senior secured term loan B with a periodic interest rate identical to that of existing term loan B, or the base rate of LIBOR plus 2.00% spread. The Company is currently exploring the possibility of obtaining lower interest rates in cash for some or all of the additional components through derivatives.

About Element Solutions Inc

Element Solutions Inc. is a leading specialty chemicals company that supplies a wide range of solutions to improve the performance of the products people use every day. These innovative, multi-step workflow solutions support customer manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor manufacturing, communications and storage infrastructure, automotive systems, industrial surface finishes, consumer packaging, and marine energy. More information about Element Solutions is available on the website www.elementsolutionsinc.com

Forward-looking statements

This press release contains forward-looking statements, including, but not limited to, statements regarding the ability of the parties to comply with the final terms of the Coventya Acquisition and complete the final documentation related to the Supplement; use of the proceeds from the Supplement; the timing of the closing of the acquisition of Coventy and the financing of the superstructure; full financing of the acquisition of Coventya at closure Supplements; the process of closing the acquisition of Coventia is ongoing; and the ability to obtain lower interest rates through derivatives. These statements are based on management’s estimates and assumptions regarding financial and market performance and future events, and are believed to be reasonable, although inherently difficult to predict. Actual results may differ materially from those projected as a result of certain factors, including but not limited to the Company’s inability to complete, complete and / or finalize the Amendment documentation, including amending its loan agreement and closing an additional line of credit to augment an existing term loan B ; the occurrence of any event, change, or other circumstance that may delay or terminate the Acquisition of the Coventy; the risk of non-fulfillment of the conditions for closing the Acquisition of the Covenant; the risk of business disruption in connection with the acquisition of Coventya, and the associated distraction of management from current business problems; failure to realize the benefits expected from the transaction or other related strategic initiatives; the impact of any future acquisitions or disposals, restructuring, refinancing and other unusual items, including the Company’s ability to raise or repay borrowed funds or capital, and to integrate and receive expected benefits, results and / or synergies from these items or other related strategic initiatives; and the possibility of more attractive strategic options in the future. Additional information about these and other factors that may change actual results is or will be included in the Company’s periodic and other reports filed with the Securities and Exchange Commission. Element Solutions assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.


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