CLEVELAND, Nov. 12, 2015 /PRNewswire/ -- PolyOne Corporation (NYSE: POL) (the "Company") today announced that it has entered into a new senior secured term loan facility in an aggregate principal amount of $550 million. The proceeds from the term loan facility were used to repay all amounts outstanding under PolyOne's revolving credit facility and will be used to repay all of its outstanding 7.375% Senior Notes due 2020 (the "Notes") and 7.5% debentures due 2015.
The term loan facility matures in 2022 and bears interest based on LIBOR plus 3.00% (subject to a LIBOR floor of 0.75%).
"We're very pleased with our recent refinancing actions, which provide us favorable interest rates, extended maturities, and enhanced liquidity while maintaining modest leverage," said Bradley C. Richardson, executive vice president and Chief Financial Officer, PolyOne Corporation. "We will continue to deploy our capital on strategic investments aligned with our four pillar strategy to drive growth and reach our 2020 Platinum Vision."
PolyOne also announced today the results to date in connection with its previously announced tender offer (the "Tender Offer") and consent solicitation ("Consent Solicitation") with respect to any and all of its outstanding Notes. As of 5:00 p.m., New York City time, on Tuesday, November 10, 2015 (the "Early Tender Deadline"), according to Global Bondholder Services Corporation ("GBSC"), approximately $295.3 million, or 93.3%, of the aggregate principal amount of outstanding Notes had been validly tendered and not validly withdrawn in the Tender Offer and Consent Solicitation. Accordingly, PolyOne has received consents sufficient to approve the amendments to the indenture governing the Notes, which will become effective when PolyOne accepts the Notes validly tendered and not validly withdrawn on or prior to the Early Tender Deadline in the Tender Offer and Consent Solicitation.
The Tender Offer and Consent Solicitation will expire at midnight, New York City time, on Wednesday, November 25, 2015, unless extended or earlier terminated (such time and date, as the same may be extended, the "Expiration Time").
Holders of Notes that validly tendered and did not validly withdraw their Notes at or prior to the Early Tender Deadline will be eligible to receive $1,042.00 for each $1,000.00 principal amount of Notes tendered, which includes a consent payment of $30.00 per $1,000.00 principal amount of the Notes tendered (the "Consent Payment"). Holders who validly tender and do not validly withdraw the Notes after the Early Tender Deadline and at or prior to the Expiration Time will only be eligible to receive $1,012.00 for each $1,000.00 principal amount of Notes tendered, and will not be eligible to receive the Consent Payment. PolyOne intends to redeem the balance of outstanding Notes, if any, following the Expiration Time.
Citigroup Global Markets Inc. is acting as dealer manager and solicitation agent for the Tender Offer and Consent Solicitation, and Global Bondholder Services Corporation is acting as information agent and tender agent for the Tender Offer and Consent Solicitation. Each of the offer to purchase (the "Offer to Purchase") and the related letter of transmittal and consent (the "Letter of Transmittal and Consent") relating to the Tender Offer and Consent Solicitation may be obtained from GBSC at http://gbsc-usa.com/PolyOne, or by calling 1-866-470-4300 (U.S. toll free) or writing to 65 Broadway, Suite 404, New York, NY 10006, Attention: Corporate Actions. Questions regarding the Tender Offer and Consent Solicitation may be directed to Citigroup Global Markets Inc. at 1-212-723-6106 (collect) or 1-800-558-3745 (U.S. toll free).
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell with respect to any securities. The solicitation of offers to buy the Notes is only being made pursuant to the terms of the Offer to Purchase and the related Letter of Transmittal and Consent. The Tender Offer and Consent Solicitation is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities laws of any such jurisdiction. None of the Company, the dealer manager and solicitation agent or the information agent and tender agent is making any recommendation as to whether or not holders should tender their Notes in connection with the Tender Offer and Consent Solicitation.
PolyOne Corporation, with 2014 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions. The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence. Guided by its Core Values, Sustainability Promise and No Surprises Pledge(SM), PolyOne is committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles.
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: our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities; the timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of service or quality caused by such closings and/or production shifts; separation and severance amounts that differ from original estimates; amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from original estimates; our ability to identify and evaluate acquisition targets and consummate acquisitions; the ability to successfully integrate acquired companies into our operations, retain the management teams of acquired companies and retain relationships with customers of acquired companies including, without limitation, Spartech Corporation and/or Accella Performance Materials; 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 financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the speed and extent of an economic recovery, including the recovery of the housing market; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; 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; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; an inability to maintain appropriate relations with unions and employees; our ability to continue to pay cash dividends; the amount and timing of repurchases of our common shares, if any; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. 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 PolyOne Corporation