Kraton Corporation (NYSE:KRA) Files An 8-K Entry into a Material Definitive Agreement
Item 9.01

Entry into a Material Definitive Agreement

Term Loan Amendment

On August 16, 2017, Kraton Corporation (the "Parent") and certain of its subsidiaries entered into a Fourth Amendment to Credit and Guarantee Agreement (the "Term Loan Amendment") relating to the Credit and Guarantee Agreement, dated as of January 6, 2016, among Kraton Polymers LLC (the "U.S. Borrower"), the Parent, certain subsidiaries of the Parent, as Guarantors, the Lenders party thereto from time to time, and Credit Suisse AG, Cayman Islands Branch, as Administrative Agent and Collateral Agent (as amended, the "Term Loan Facility"). J.P. Morgan, Deutsche Bank, Credit Suisse and Bank of America Merrill Lynch were joint lead arrangers and joint bookrunners for the transaction in connection with the Term Loan Amendment.

to the Term Loan Amendment:

•The U.S. Borrower decreased the interest rate on the remaining approximately $520 million of term loans under the USD Tranche from LIBOR plus 4.00% to LIBOR plus 3.00%; and

•The maturity date of the Term Loan Facility remained unchanged and each tranche of term loans will mature on January 6, 2022.

The Term Loan Amendment reset the period during which a prepayment premium may be required for a "Repricing Event" (as defined in the Term Loan Facility) under each of the Euro Tranche and the USD Tranche until six months after the effective date of the Term Loan Amendment.

Subject to customary exceptions, to the Term Loan Amendment, obligations under the Euro Tranche are:

• Guaranteed by the Parent, certain wholly-owned domestic subsidiaries of the Parent, including the U.S. Borrower and other domestic subsidiaries of the Parent that guarantee the USD Tranche (together with the Parent and the U.S. Borrower, the "U.S. Guarantors"), and certain other Dutch subsidiaries of the Parent (together the "Dutch Guarantors"), including those Dutch subsidiaries that are also either a borrower or a guarantor under the Euro tranche facility under the Amended and Restated Loan, Security and Guarantee Agreement, dated as of January 6, 2016 (the "ABL Facility"); and

•Secured by a (i) a first-lien pledge of 50% of the equity interests held by the U.S. Guarantors in their respective first-tier domestic subsidiaries and 65% of the equity interests directly held by the U.S. Guarantors in their first-tier foreign subsidiaries, (ii) a first-priority security interest in substantially all tangible and intangible assets of the U.S. Guarantors, other than certain accounts, inventory, cash and other customary items that are pledged on first priority basis to secure the ABL Facility (the "ABL Priority Collateral"), (iii) a first-lien pledge of 50% of the equity interests in the Euro Borrower and the Dutch Guarantors, (iv) a first-lien pledge of any intercompany notes or instruments evidencing intercompany indebtedness owed to the Euro Borrower or the guarantors of the Euro Tranche that are not U.S. Guarantors and (v) a second-priority security interest in all of the ABL Priority Collateral.

ABL Amendment

In connection with the Term Loan Amendment, on August 16, 2017, the Parent and certain of its subsidiaries also entered into a First Amendment and Consent to the ABL Facility (the "ABL Amendment). The ABL Amendment provides, among other things, that any foreign subsidiary of the Parent that becomes a guarantor under the Euro Tranche will also become a guarantor under the Euro tranche facility of the ABL Facility.

The foregoing description does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Term Loan Amendment and the ABL Amendment, attached hereto as Exhibit 10.1 and Exhibit 10.2, respectively, and incorporated herein by reference.

Certain Relationships

Certain lenders under each of the Term Loan Facility and ABL Facility have in the past engaged, and may in the future engage, in transactions with and perform services, including commercial banking, financial advisory and investment banking services, for the Parent, its subsidiaries, and their respective affiliates in the ordinary course of business for which they have received or will receive customary fees and expenses.

The information set forth under Item 9.01 above regarding the Term Loan Facility and the ABL Facility is incorporated by reference into this Item 9.01.

On August 16, 2017, the Parent issued a press release announcing the consummation of the financial transactions described in Item 9.01 above. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 9.01.

(d)Exhibits

Kraton Corp Exhibit
EX-10.1 2 a101fourthamendmenttotlbfa.htm EXHIBIT 10.1 Exhibit Exhibit 10.1Execution VersionFOURTH AMENDMENT TO CREDIT AND GUARANTEE AGREEMENT FOURTH AMENDMENT TO CREDIT AND GUARANTEE AGREEMENT (this “Agreement” or the “Amendment”),…
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About Kraton Corporation (NYSE:KRA)

Kraton Corporation, formerly Kraton Performance Polymers, Inc., is a specialty chemicals company. The Company manufactures styrenic block copolymers (SBCs) and other engineered polymers. The Company also produces specialty products primarily derived from pine wood pulping co-products. It operates through the manufacturing and marketing of engineered polymers segment. Its SBCs are used in a range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing and footwear products. It also sells isoprene rubber (IR) and isoprene rubber latex (IRL), which are non-SBC products primarily used in applications, such as medical products, personal care, adhesives, tackifiers, paints and coatings.