KMG Chemicals, Inc. (NYSE:KMG) Files An 8-K Other EventsItem 8.01Other Events.
On August 11, 2017, KMG Chemicals, Inc. (the “Company”) entered into an interest rate swap agreement (“Swap Transaction”) to manage its exposure to fluctuations in variable interest rates. Loans under the Company’s existing credit agreement bear interest at a rate of (a) LIBOR plus (b) a margin based on net funded debt to adjusted earnings before interest, taxes, depreciation and amortization (“margin”). TheSwap Transaction effectively exchanges the interest rate on 45% of the debt projected to be outstanding under the credit agreement from (i) variable LIBOR plus margin to (ii) a fixed rate of 1.925% per annum plus margin. The Swap Transaction has an effective date of August 31, 2017 and a termination date of June 15, 2024.
About KMG Chemicals, Inc. (NYSE:KMG)
KMG Chemicals, Inc. manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals. The Company operates through its subsidiaries, KMG Electronic Chemicals, Inc. (KMG EC), KMG-Bernuth, Inc. (KMG Bernuth) and KMG Val-Tex, LLC (Val-Tex). The Company’s Electronic chemicals business sells high purity and ultra-purity wet process chemicals primarily to the semiconductor industry. The Company’s Other chemicals segment includes its industrial lubricants business and wood treating chemicals business. The Company’s products sulfuric, phosphoric, nitric and hydrofluoric acids, ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various blends of chemicals.
