WAYNE, PA — Trinseo PLC (NYSE: TSE) has entered into a Transaction Support Agreement (TSA) with its creditors to execute a series of financial measures aimed at improving liquidity, extending debt maturity timelines, and supporting its strategic transformation. The agreement promises a stronger financial foundation for the global materials company as it focuses on specialty materials and sustainability solutions.
The TSA involves key refinancing transactions, including redeeming and refinancing $115 million in 2025 Senior Notes with incremental 2028 Refinance Term Loans and establishing a new $300 million revolving credit facility with a maturity date of February 2028. The agreement also covers an exchange of at least $330 million in 2029 Senior Notes for discounted Second Lien Senior Secured Notes. Collectively, these actions aim to reduce near-term debt pressures and extend all maturities out to 2028 or later.
“This transaction significantly strengthens our ability to implement key strategic initiatives that support our ongoing transformation as a leading provider of specialty materials and sustainable solutions,” said Frank Bozich, President and CEO of Trinseo. “The added financial flexibility gives us more runway to thoughtfully focus on optimizing our portfolio, invest in our leading circular technologies, and further solidify our financial position. Combined, these help us add value to our customers, our shareholders, and our colleagues around the world.”
The Supporting Creditors participating in the TSA include approximately 74% of the 2029 Senior Notes, 89% of commitments under Trinseo’s revolving credit facility, and 58% of the term loans from its 2028 Refinance Term Loan facility. Significant stakeholder support is expected to enable the swift execution of these transactions, which are set to conclude by January 2025.
Trinseo also plans to launch an exchange offer, offering new 7.625% Second Lien Senior Secured Notes due 2029 to holders of the 5.125% Senior Notes in exchange for their current holdings, at a discount to par value.
These steps are expected to significantly improve Trinseo’s financial flexibility, leaving the company with no debt maturities until 2028. The refinanced and restructured debt will allow Trinseo to redirect focus toward expanding its specialty materials portfolio and advancing sustainable processes.
The company was advised by Ropes & Gray LLP, Centerview Partners LLC, and FTI Consulting during the transaction process.
With a successful conclusion to this initiative, Trinseo believes it is well-positioned for growth in key markets and prepared to drive long-term value for stakeholders.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.