GREENVILLE, S.C., May 01, 2017 (GLOBE NEWSWIRE) -- KEMET Corporation (NYSE:KEM), a leading global supplier of passive electronic components, announced today that it has entered into a new $345 million Term Loan Credit Facility. The proceeds are being used, together with cash on hand, to fund the redemption of all of KEMET’s outstanding 10½% Senior Notes due 2018 (the “Senior Notes”), which were also called for redemption today. The new Term Loan Credit Facility provides KEMET with lower annual cash interest expenses, resulting in interest expense savings of approximately $13 million annually, and provides additional operational flexibility to support its long-term growth objectives. The Term Loans were sold at 97 (with an original issue discount of 300 bps), and will bear interest at KEMET’s option at the Base Rate + 500 bps or LIBO + 600 bps (with a 100 bps LIBO floor), and reflect a current Corporate Rating of B3/B. The Term Loans mature April 28, 2024.
In connection with the closing of the new Term Loan Credit Facility, KEMET also entered into a new amendment to its revolving credit facility. The new amendment to the revolving credit facility provides KEMET with lower pricing and the ability to complete the refinancing. As part of the overall refinancing, KEMET also repaid all amounts outstanding under the revolving credit facility.
“We are pleased to bring this refinancing to completion in such a positive manner. This refinancing gives us significant annual cash interest expense savings, and also provides us with the financial and operating flexibility to achieve our long-term growth objectives,” stated Per Loof, the Company’s Chief Executive Officer. “This refinancing of our existing debt at improved interest rates and with lower cash interest expense will provide additional earnings per share for our shareholders,” continued Loof.
For details of the specific terms of the new Term Loan Credit Facility and amendment to the revolving credit facility, please refer to the Company’s Form 8-K related to these transactions. Advisors to the Company included Merrill Lynch, Pierce, Fenner & Smith Incorporated, as sole lead arranger and bookrunner for the Term Loan Credit Facility and Jenner & Block LLP as the Company’s legal counsel. Cahill Gordon & Reindel LLP acted as legal counsel to the sole lead arranger.
About KEMET
The Company's common stock is listed on the NYSE under the ticker symbol "KEM" (NYSE:KEM). At the Investor Relations section of our web site at http://www.kemet.com/IR, users may subscribe to KEMET news releases and find additional information about our Company. KEMET offers our customers the broadest selection of capacitor technologies in the industry, along with an expanding range of electromechanical devices, electromagnetic compatibility solutions and supercapacitors. Our vision is to be the preferred supplier of electronic component solutions demanding the highest standards of quality, delivery and service. Additional information about KEMET can be found at http://www.kemet.com.
