ANDOVER, Mass., July 06, 2017 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ:MKSI), a global provider of technologies that enable advanced processes and improve productivity, announced today the third successful repricing of its existing secured term loan. The lenders have agreed to an amendment that results in a reduction of the interest rate spread on the term loan by 50 basis points from LIBOR plus 2.75% to LIBOR plus 2.25% with a 0.75% floor on LIBOR. In addition, if the Company’s Total Leverage Ratio, as defined in its Term Loan Credit Agreement, is below 1.25:1, the interest rate spread will decrease further to LIBOR plus 2.00% with a 0.75% LIBOR floor.
“We are very pleased to complete a third successful repricing of our existing secured term loan. Since origination on April 29, 2016, we reduced the spread on our Term Loan by 175 basis points and have a further opportunity to reduce the spread by an additional 25 basis points. We have also completed $200 million in voluntary prepayments which coupled with scheduled principal payments, have reduced the principal outstanding from $780 million to $573 million. As a result of these actions, since origination, we have been able to reduce our non-GAAP interest expense by $18 million, or 45%, on an annualized basis,” said Seth H. Bagshaw, Senior Vice President and Chief Financial Officer.
Barclays acted as sole arranger for this term loan repricing and amendment.
About MKS Instruments
MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measure, control, power, monitor, and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity. Our products are derived from our core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control technology, ozone generation and delivery, RF & DC power, reactive gas generation, vacuum technology, lasers, photonics, sub-micron positioning, vibration isolation, and optics. Our primary served markets include semiconductor capital equipment, general industrial, life sciences, and research. Additional information can be found at www.mksinst.com.
