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Kraton (KRA) Plans to Amend Existing Term Loan Facility
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Kraton Corporation and some of its fully-owned subsidiaries have announced plans to amend the existing senior secured term loan facility to re-price the current term loans under the facility and also extend maturity by roughly three years to March 2025.
The company also intends to increase borrowings under the Euro denominated tranche of this term loan by roughly $100-$200 million and use the proceeds from the additional borrowings to repay a portion of the existing U.S. dollar denominated tranche under the term loan facility.
Shares of Kraton have declined 8.6% over the last three months, underperforming the 3% dip recorded by its industry.
Kraton swung to a profit in the fourth quarter of 2017. The chemical maker logged a profit of $69.6 million or $2.17 per share in the reported quarter against a loss of $3.7 million or 12 cents per share a year ago. Barring one-time items, adjusted earnings came in at 67 cents per share for the quarter, missing the Zacks Consensus Estimate of 79 cents.
Notably, the company’s long-term debt was $1,574.9 million at the end of 2017, down around 7% year over year. It also reduced net debt by $163 million in 2017.
Kraton expects adjusted EBITDA for 2018 to be roughly $400 million. The company also expects to cut net debt, excluding the net debt of its KFPC joint venture, by around $125 million this year.
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 37.8% over the last six months.
Mosaic has an expected long-term earnings growth rate of 9.5%. Its shares have moved up 33.6% over the past six months.
U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 73.9% over the last six months.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Kraton (KRA) Plans to Amend Existing Term Loan Facility
Kraton Corporation and some of its fully-owned subsidiaries have announced plans to amend the existing senior secured term loan facility to re-price the current term loans under the facility and also extend maturity by roughly three years to March 2025.
The company also intends to increase borrowings under the Euro denominated tranche of this term loan by roughly $100-$200 million and use the proceeds from the additional borrowings to repay a portion of the existing U.S. dollar denominated tranche under the term loan facility.
Shares of Kraton have declined 8.6% over the last three months, underperforming the 3% dip recorded by its industry.
Kraton swung to a profit in the fourth quarter of 2017. The chemical maker logged a profit of $69.6 million or $2.17 per share in the reported quarter against a loss of $3.7 million or 12 cents per share a year ago. Barring one-time items, adjusted earnings came in at 67 cents per share for the quarter, missing the Zacks Consensus Estimate of 79 cents.
Notably, the company’s long-term debt was $1,574.9 million at the end of 2017, down around 7% year over year. It also reduced net debt by $163 million in 2017.
Kraton expects adjusted EBITDA for 2018 to be roughly $400 million. The company also expects to cut net debt, excluding the net debt of its KFPC joint venture, by around $125 million this year.
Kraton Corporation Price and Consensus
Kraton Corporation Price and Consensus | Kraton Corporation Quote
Zacks Rank & Stocks to Consider
Kraton currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Steel Dynamics, Inc. (STLD - Free Report) , The Mosaic Company (MOS - Free Report) and United States Steel Corporation (X - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 37.8% over the last six months.
Mosaic has an expected long-term earnings growth rate of 9.5%. Its shares have moved up 33.6% over the past six months.
U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 73.9% over the last six months.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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