Avient Announces Debt Financing to Fund Acquisition of DSM Protective Materials

CLEVELAND, July 28, 2022 /PRNewswire/ -- Avient Corporation (NYSE: AVNT) ("Avient"), a leading provider of specialized and sustainable solutions, today announced it has finalized the debt financing to fund its pending acquisition of DSM Protective Materials (including the Dyneema^® brand) ("Dyneema"), which is expected to close on September 1, 2022. 

The company has priced $725 million in aggregate principal amount of senior notes due 2030 (the "notes") in an offering exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act"). The notes will bear interest at an annual rate of 7.125% and will be issued at a price of 100% of their principal amount.

In conjunction with the notes offering, the company also priced a secured term loan due 2029 (the "term loan") for the remaining funds needed for the Dyneema acquisition.  The term loan is expected to bear interest at an annual rate of SOFR plus 325 bps spread and is expected to be issued at an original issue discount of 97. 

The company noted the all-in weighted average annual interest rate for the Dyneema acquisition financing is approximately 6.6%.

The closing of the notes offering and term loan are expected to occur in August 2022, subject to customary closing conditions.

About Avient

Avient Corporation (NYSE: AVNT), with 2021 revenues of $4.8 billion, provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. Examples include:

• Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
• Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation and reduce carbon footprint
• Sustainable infrastructure solutions that increase energy efficiency, renewable energy, natural resource conservation and fiber optic / 5G network accessibility

Avient employs approximately 8,800 associates and is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.  For more information, visit www.avient.com/.

Forward-Looking Statements

In this press release, statements that are not reported financial results or other historical information are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks, including recessionary conditions; the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without limitation, any supply chain and logistics issues; changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; fluctuations in raw material prices, quality and supply, and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; information systems failures and cyberattacks; amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; any material adverse changes in the Dyneema Business; our ability to achieve the strategic and other objectives relating to the Acquisition, and the possible sale of the Distribution business segment; and other factors described in our Annual Report on Form 10-K for the year ended December 31, 2021 under Item 1A, "Risk Factors." The above list of factors is not exhaustive.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.

SOURCE Avient Corporation