MKS Instruments Successfully Reprices Term Loans

By Tamara Parker • Friday, January 24 15:25 • Permanent Link

MKS Instruments, Inc. (NASDAQ: MKSI) has announced the successful completion of the repricing of its $2.5 billion and €0.6 billion secured tranche B term loans maturing in 2029. As a result of the repricing, the interest rate for the USD tranche B term loans has been reduced from SOFR plus a margin of 225 basis points to SOFR plus 200 basis points, while the interest rate for the EUR tranche B term loans has been reduced from EURIBOR plus a margin of 275 basis points to EURIBOR plus 250 basis points.

Concurrently with the repricing, MKS made a voluntary prepayment of $100 million on its USD tranche B term loans, reducing the principal amount of USD tranche B term loans from $2.6 billion to $2.5 billion. Based on the current interest rates, the annualized cash interest savings from these actions are approximately $15 million.

Ram Mayampurath, Executive Vice President, Chief Financial Officer, and Treasurer of MKS Instruments, expressed the company's commitment to deleveraging its balance sheet, stating that the 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.

The joint lead arrangers and joint bookrunners for the tranche B term loan repricing were 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.

MKS Instruments, Inc. is a global provider of enabling technologies that deliver foundational technology solutions to leading-edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. The company applies its 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. Today the company's shares have moved -2.1% to a price of $117.17. Check out the company's full 8-K submission here.

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