Milacron refinances its term loan
January 30, 2017 by Canadian Plastics
Milacron LLC, the wholly owned subsidiary of processing equipment maker Milacron Holdings Corp., has refinanced its term loan.
In a statement, Cincinnati-Ohio-based Milacron said the transaction is anticipated to generate annual cash interest savings, after taxes, of approximately US$19 million, on a pro forma basis.
Milacron said it has received notice that its new US$947 million term loan facility has been allocated to lenders. The transaction is expected to close on February 15. The new term loan has a maturity of September 28, 2023.
“The proceeds of the new term loan facility, together with cash on hand, are expected to be used to repay Milacron’s existing US$482 million term loan facility and its US$464.4 million of outstanding 7.75% senior notes due 2021, as well as to pay fees and expenses associated with the refinancing transactions,” the statement said.
As part of the transaction, Milacron expects to incur cash fees and expenses of approximately US$26 million for the quarter ended March 31, 2017.
The transaction is expected to close on February 15, 2017 and remains subject to documentation and customary closing conditions, Milacron said.