MKS Instruments Completes Refinancing of Secured Term Loan A
January 22 2024 - 4:10PM
MKS Instruments, Inc. (NASDAQ: MKSI) (“MKS”), a global provider of
enabling technologies that transform our world, announced today
that it successfully completed the refinancing of its existing $744
million secured tranche A term loans using a portion of the
proceeds of its $490 million incremental secured U.S. dollar
tranche B term loans and €250 million incremental secured Euro
tranche B term loans (collectively, the “Term Loan B”). As a result
of the refinancing, the maturity of the refinanced loans has been
extended to 2029, consistent with MKS’ existing secured tranche B
term loans, and is expected to result in savings by reducing MKS’
weighted average cost of debt on the amount of debt refinanced by
approximately 30 to 35 basis points based on current interest
rates.
“This move adds flexibility, simplifies our capital
structure, and is consistent with our longstanding track record of
proactively managing our balance sheet,” said Seth H. Bagshaw,
Executive Vice President and Chief Financial Officer. “We are
pleased with the strong market demand for our Term Loan B
reflecting the strength of our operating model and appreciate the
partnership of our lenders in facilitating the transaction.”
JP Morgan acted as the sole lead arranger and sole
bookrunner for the tranche A term loan refinancing.
About MKS InstrumentsMKS
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 STATEMENTSThis
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 the expected savings related to the
refinancing by reduction of MKS’ weighted average cost of debt on
the amount of debt refinanced. 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: David RyzhikVice President, Investor
RelationsTelephone: (978) 557-5180Email:
david.ryzhik@mksinst.com
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