MKS Instruments Completes Repricing on its Secured Term Loan B USD and EUR Tranches and Makes a $100 Million Voluntary Prepayment on its Secured Term Loan B USD
MKS Instruments (NASDAQ: MKSI) has successfully completed the repricing of its secured tranche B term loans, consisting of $2.5 billion USD and €0.6 billion EUR maturing in 2029. The repricing reduces interest rates from SOFR plus 225 basis points to SOFR plus 200 basis points for USD loans and from EURIBOR plus 275 basis points to EURIBOR plus 250 basis points for EUR loans.
Additionally, MKS made a $100 million voluntary prepayment on its USD tranche B term loans, reducing the principal amount from $2.6 billion to $2.5 billion. Based on current interest rates, these combined actions are expected to result in approximately $15 million in annualized cash interest savings.
MKS Instruments (NASDAQ: MKSI) ha completato con successo il riprezzamento dei suoi prestiti garantiti tranche B, consistenti in 2,5 miliardi di USD e 0,6 miliardi di EUR in scadenza nel 2029. Il riprezzamento riduce i tassi di interesse da SOFR più 225 punti base a SOFR più 200 punti base per i prestiti in USD e da EURIBOR più 275 punti base a EURIBOR più 250 punti base per i prestiti in EUR.
Inoltre, MKS ha effettuato un anticipo volontario di 100 milioni di dollari sui suoi prestiti in USD tranche B, riducendo l'importo principale da 2,6 miliardi a 2,5 miliardi. Basandosi sui tassi di interesse attuali, queste azioni combinate dovrebbero comportare un risparmio annuo in interessi in contante di circa 15 milioni di dollari.
MKS Instruments (NASDAQ: MKSI) ha completado con éxito el reajuste de sus préstamos a plazo B garantizados, que consisten en 2.5 mil millones de USD y 0.6 mil millones de EUR que vencen en 2029. El reajuste reduce las tasas de interés de SOFR más 225 puntos base a SOFR más 200 puntos base para los préstamos en USD y de EURIBOR más 275 puntos base a EURIBOR más 250 puntos base para los préstamos en EUR.
Además, MKS realizó un pago anticipado voluntario de 100 millones de dólares en sus préstamos a plazo B en USD, reduciendo el monto principal de 2.6 mil millones a 2.5 mil millones. Basado en las tasas de interés actuales, estas acciones combinadas se espera que generen un ahorro anual en intereses en efectivo de aproximadamente 15 millones de dólares.
MKS Instruments (NASDAQ: MKSI)는 2029년에 만료되는 25억 달러와 6억 유로로 구성된 보장된 트란체 B 대출의 재가격 조정을 성공적으로 완료했습니다. 재가격 조정으로 인해 USD 대출의 이자율이 SOFR + 225 베이시스 포인트에서 SOFR + 200 베이시스 포인트로 낮아지고, EUR 대출의 이자율이 EURIBOR + 275 베이시스 포인트에서 EURIBOR + 250 베이시스 포인트로 감소합니다.
또한, MKS는 USD 트란체 B 대출에 대해 1억 달러의 자발적인 선지급을 하여 원금을 26억 달러에서 25억 달러로 줄였습니다. 현재 이자율을 기준으로 할 때, 이 두 가지 조치의 결과로 연간 약 1500만 달러의 현금 이자 절감 효과가 예상됩니다.
MKS Instruments (NASDAQ: MKSI) a terminé avec succès le réajustement de ses prêts garantis tranche B, consistant en 2,5 milliards USD et 0,6 milliard EUR arrivant à échéance en 2029. Le réajustement réduit les taux d'intérêt de SOFR plus 225 points de base à SOFR plus 200 points de base pour les prêts en USD et de EURIBOR plus 275 points de base à EURIBOR plus 250 points de base pour les prêts en EUR.
De plus, MKS a effectué un remboursement anticipé volontaire de 100 millions USD sur ses prêts tranche B en USD, réduisant le montant principal de 2,6 milliards à 2,5 milliards. En se basant sur les taux d'intérêt actuels, ces actions combinées devraient entraîner des économies annuelles d'intérêt en espèces d'environ 15 millions USD.
MKS Instruments (NASDAQ: MKSI) hat erfolgreich die Neufestsetzung seiner gesicherten Tranche-B-Darlehen abgeschlossen, die aus 2,5 Milliarden USD und 0,6 Milliarden EUR bestehen, und bis 2029 fällig werden. Die Neufestsetzung reduziert die Zinssätze von SOFR plus 225 Basispunkte auf SOFR plus 200 Basispunkte für USD-Darlehen und von EURIBOR plus 275 Basispunkte auf EURIBOR plus 250 Basispunkte für EUR-Darlehen.
Darüber hinaus hat MKS eine fakultative Vorabzahlung von 100 Millionen USD auf seine USD Tranche-B-Darlehen geleistet, wodurch der Hauptbetrag von 2,6 Milliarden auf 2,5 Milliarden USD gesenkt wurde. Basierend auf den aktuellen Zinssätzen wird erwartet, dass diese kombinierten Maßnahmen jährlich etwa 15 Millionen USD an Zinsersparnissen in bar bringen.
- Reduction of $100 million in term loan debt principal
- Expected $15 million annual cash interest savings from repricing and prepayment
- 25 basis points reduction in interest rates for both USD and EUR term loans
- Substantial remaining debt load of $2.5 billion USD and €0.6 billion EUR
Insights
This debt restructuring initiative represents a strategically timed move by MKS Instruments to optimize its capital structure and reduce interest expenses. The 25 basis point reduction in both USD and EUR tranches, combined with the
First, the expected
Second, the successful repricing indicates strong lender confidence in MKS's credit profile, as evidenced by the participation of major financial institutions. The ability to secure better terms in the current market suggests robust underlying business fundamentals and healthy cash flow generation capabilities.
Third, this move aligns with management's 18-month deleveraging strategy, demonstrating consistent execution of their financial optimization plan. The voluntary prepayment of
The timing of this refinancing is particularly advantageous as it locks in lower spreads while market expectations point to potential interest rate cuts in 2025, potentially leading to even lower overall borrowing costs in the future.
ANDOVER, Mass., Jan. 24, 2025 (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, concurrently with 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 continue to demonstrate our commitment to deleveraging our balance sheet,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer. “Our latest term loan B repricing is one of many actions taken over the last 18 months to proactively seek opportunities to reduce costs and maximize free cash flow to repay debt.”
JPMorgan Chase Bank, N.A., Barclays Bank PLC, BofA Securities, Inc., Citibank, N.A., HSBC Securities (USA) Inc., Mizuho Bank, Ltd., Morgan Stanley Senior Funding, Inc., and PNC Bank, National Association 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
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