MKS Instruments Completes Repricing and Makes a $110 Million Voluntary Prepayment on its Secured Term Loan B
MKS Instruments (NASDAQ: MKSI) has successfully completed the repricing of its $2.6 billion and €0.8 billion secured tranche B term loans maturing in 2029. The repricing reduces the interest rate for the USD tranche B term loans from SOFR plus 250 basis points to SOFR plus 225 basis points, and for the EUR tranche B term loans from EURIBOR plus 300 basis points to EURIBOR plus 275 basis points.
Additionally, 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 current interest rates, these actions are expected to result in annualized cash interest savings of approximately $17 million.
MKS Instruments (NASDAQ: MKSI) ha completato con successo il riequilibrio dei suoi prestiti garantiti tranche B per un totale di 2,6 miliardi di dollari e 0,8 miliardi di euro con scadenza nel 2029. Il riequilibrio riduce il tasso d'interesse per i prestiti garantiti tranche B in USD da SOFR più 250 punti base a SOFR più 225 punti base, e per i prestiti garantiti tranche B in EUR da EURIBOR più 300 punti base a EURIBOR più 275 punti base.
Inoltre, MKS ha effettuato un rimborso volontario di 110 milioni di dollari sui suoi prestiti garantiti tranche B, di cui 69 milioni di dollari per il prestito Term Loan B in USD e 38 milioni di euro per il prestito Term Loan B in EUR. Sulla base degli attuali tassi d'interesse, si prevede che queste azioni comporteranno un risparmio annualizzato sugli interessi in contante di circa 17 milioni di dollari.
MKS Instruments (NASDAQ: MKSI) ha completado con éxito la revalorización de sus préstamos garantizados tranche B por un total de 2.6 mil millones de dólares y 0.8 mil millones de euros con vencimiento en 2029. La revalorización reduce la tasa de interés para los préstamos garantizados tranche B en USD de SOFR más 250 puntos básicos a SOFR más 225 puntos básicos, y para los préstamos garantizados tranche B en EUR de EURIBOR más 300 puntos básicos a EURIBOR más 275 puntos básicos.
Además, MKS realizó un pago anticipado voluntario de 110 millones de dólares sobre sus préstamos garantizados tranche B, compuesto por 69 millones de dólares para el préstamo Term Loan B en USD y 38 millones de euros para el préstamo Term Loan B en EUR. Basado en las tasas de interés actuales, se espera que estas acciones resulten en ahorros anuales en intereses en efectivo de aproximadamente 17 millones de dólares.
MKS Instruments (NASDAQ: MKSI)는 2029년에 만료되는 26억 달러 및 8억 유로 규모의 담보 tranche B 대출의 가격 재조정을 성공적으로 완료했습니다. 가격 재조정은 USD tranche B 대출의 이자율을 SOFR 플러스 250베이시스 포인트에서 SOFR 플러스 225베이시스 포인트로, EUR tranche B 대출의 이자율을 EURIBOR 플러스 300베이시스 포인트에서 EURIBOR 플러스 275베이시스 포인트로 낮춥니다.
또한, MKS는 1억 1천만 달러의 자발적 선지급을 담보 tranche B 대출에 대해 진행했습니다. 이 중 6천900만 달러는 USD Term Loan B에, 3천800만 유로는 EUR Term Loan B에 해당합니다. 현재 이자율을 기준으로 이러한 조치는 약 1천7백만 달러의 연간 현금 이자 절감을 가져올 것으로 예상됩니다.
MKS Instruments (NASDAQ: MKSI) a réussi à finaliser le réajustement de ses prêts garantis tranche B de 2,6 milliards de dollars et de 0,8 milliard d'euros arrivant à échéance en 2029. Ce réajustement réduit le taux d'intérêt pour les prêts garantis tranche B en USD de SOFR plus 250 points de base à SOFR plus 225 points de base, et pour les prêts garantis tranche B en EUR de EURIBOR plus 300 points de base à EURIBOR plus 275 points de base.
De plus, MKS a réalisé un remboursement anticipé volontaire de 110 millions de dollars sur ses prêts garantis tranche B, dont 69 millions de dollars pour le prêt Term Loan B en USD et 38 millions d'euros pour le prêt Term Loan B en EUR. En se basant sur les taux d'intérêt actuels, ces actions devraient entraîner une économie d'intérêt en espèces d'environ 17 millions de dollars par an.
MKS Instruments (NASDAQ: MKSI) hat erfolgreich die Neupreisgestaltung seiner gesicherten tranche B-Darlehen in Höhe von 2,6 Milliarden USD und 0,8 Milliarden Euro mit fällig im Jahr 2029 abgeschlossen. Die Neupreisgestaltung senkt den Zinssatz für die USD tranche B-Darlehen von SOFR plus 250 Basispunkte auf SOFR plus 225 Basispunkte und für die EUR tranche B-Darlehen von EURIBOR plus 300 Basispunkte auf EURIBOR plus 275 Basispunkte.
Darüber hinaus tätigte MKS eine freiwillige Vorabzahlung von 110 Millionen USD auf seine gesicherten tranche B-Darlehen, bestehend aus 69 Millionen USD für das USD Term Loan B und 38 Millionen Euro für das EUR Term Loan B. Basierend auf den aktuellen Zinssätzen wird erwartet, dass diese Maßnahmen zu jährlichen Zinsersparnissen in Höhe von etwa 17 Millionen USD führen.
- Successful repricing of $2.6 billion and €0.8 billion secured tranche B term loans
- Interest rate reduction of 25 basis points for both USD and EUR tranche B term loans
- Voluntary prepayment of $110 million on secured tranche B term loans
- Expected annualized cash interest savings of approximately $17 million
- None.
Insights
Repricing and Voluntary Prepayment: MKS Instruments' repricing of its term loans reduces the interest rate, positively impacting its debt servicing costs. This action will save the company approximately
Market Perception and Long-term Strategy: Investors should view MKS Instruments' actions favorably. Reducing debt and interest expenses strengthens its financial position and demonstrates prudent fiscal management. The market often rewards companies that proactively manage debt, as it mitigates risk and enhances stability. For a technology-focused company like MKS, this stability can translate into more predictable earnings and increased investment in innovation. The involvement of multiple reputable financial institutions, such as JPMorganChase and Morgan Stanley, also signals strong institutional support and confidence in MKS’s strategic decisions.
Implications for Technological Advancements: With the savings from reduced interest expenses, MKS Instruments can potentially allocate more resources to R&D and technological advancements. This could lead to new product developments or improvements in existing technologies, which are important for maintaining competitive advantage in the tech sector. As technology evolves rapidly, staying ahead requires continuous investment. Therefore, the financial maneuvering that frees up cash flow can have a significant positive impact on MKS's innovation capabilities and market positioning.
ANDOVER, Mass., July 23, 2024 (GLOBE NEWSWIRE) -- 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
In addition, immediately prior to the repricing, MKS made a voluntary prepayment of
Based on the current interest rates, the annualized cash interest savings from the combined actions is approximately
“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 Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: paretosh.misra@mksinst.com
FAQ
What was the result of MKS Instruments' (MKSI) term loan repricing?
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