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Trinseo (TSE) Refinances $660M Term Loan & $385M Senior Notes

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Trinseo PLC (TSE - Free Report) recently said that it has received an aggregate principal amount of $1.077 billion in secured term loan financing arranged by Angelo, Gordon & Co., L.P. and Oaktree Capital Management, L.P., with funds managed by Angelo Gordon, Oaktree and Apollo Global Management, Inc. as lenders. The proceeds will be utilized to refinance the full outstanding 2024 term loan worth $660 million and $385 million of the company's existing $500 million 2025 Senior Notes.

The New Term Loan Facility terms comprise a total new principal amount of $1.077 billion for net cash proceeds of $1.045 billion. The annual cash interest rate is Secured Overnight Financing Rate (“SOFR”) + 8.50%. In addition, it comprises an option to choose partial payment-in-kind interest at an annual cash interest rate of SOFR + 4.25% and a Payment-in-kind (“PIK”) interest rate of 5.25%.

The transaction addresses the entirety of Trinseo's 2024 debt maturity and more than 75% of its debt maturing in 2025. The financing method was very competitive, demonstrating investors' confidence in the company's long-term prospects, TSE noted.

Shares of Trinseo have lost 68.7% over the past year compared with a 41.8% decline of its industry.

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Zacks Rank & Key Picks

Trinseo currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , The Andersons Inc. (ANDE - Free Report) and Veritiv Corporation .

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 63.7% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Andersons currently carries a Zacks Rank #1. The stock has gained roughly 41.8% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.

Veritiv currently carries a Zacks Rank #2 (Buy). The stock has rallied roughly 37.4% in the past year. VRTV beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6%, on average.


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