CLEVELAND, July 28, 2022 /PRNewswire/ — Avient Corporation (NYSE: AVNT) (“Avient”), a leading provider of specialty and durable solutions, today announced that it has completed debt financing to fund its pending acquisition of DSM Protective Materials (including Dyneema® brand) (“Dyneema”), which is scheduled to close on September 1st2022.
The company charged $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 100% of their principal amount.
Concurrent with the note offering, the Company has also priced a secured term loan maturing in 2029 (the “Term Loan”) for the remaining funds required for the acquisition of Dyneema. The term loan is expected to bear interest at an annual rate of SOFR plus a spread of 325 basis points and is expected to be issued at an initial issue discount of 97.
The company noted that the aggregate weighted average annual interest rate for financing the Dyneema acquisition is approximately 6.6%.
Closing of the Note Offering and the Term Loan is expected to occur within August 2022subject to customary closing conditions.
Avient Corporation (NYSE: AVNT), with 2021 revenue of $4.8 billion, provides specialized and durable hardware solutions that turn customer challenges into opportunities, bringing new products to life for a better world. Examples include:
Unique technologies that improve product recyclability and enable the incorporation of recycled content, advancing a more circular economy
Lightweight solutions that replace traditional heavier materials like metal, glass and wood, which can improve energy efficiency in all modes of transport and reduce carbon footprint
Sustainable infrastructure solutions that increase energy efficiency, renewable energy, natural resource conservation, and fiber optic/5G network accessibility
Avient employs around 8,800 people and is ACC Responsible Care® certified, founding member of the Alliance to End Plastic Waste and Great Place to Work® certified. For more information, visit www.avient.com/.
In this press release, statements that are not published 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 predictions 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, each of which could cause actual results to differ materially from those expressed or implied by the forward-looking statements. They use words such as ‘will’, ‘anticipate’, ‘estimate’, ‘expect’, ‘plan’, ‘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 which could adversely on the availability of credit already arranged and the availability and cost of credit in the future; the effect on foreign operations of fluctuations in currencies, prices 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 condition or cash flows, including, without limitation, any supply chain issues and logistics; changes in polymer consumption growth rates and plastics laws and regulations in the jurisdictions where we operate; fluctuations in commodity prices, quality and supply, and energy prices and supply; production downtime or material costs associated with scheduled or unscheduled maintenance programs; unforeseen developments that may arise 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 system failures and cyberattacks; amounts of cash and non-cash charges related to restructuring plans which may differ from initial estimates, including due to timing changes associated with the underlying shares; any material adverse change in the Dyneema business; our ability to achieve strategic and other objectives related to the acquisition and eventual 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 Section 1A, “Risk Factors”. The above list of factors is not exhaustive.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to review any other disclosures we make on related matters in our reports on Forms 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.
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