MKS Instruments Completes Repricing and Makes a $110 Million Voluntary Prepayment on its Secured Term Loan B

Core Viewpoint - MKS Instruments, Inc. successfully completed the repricing of its secured tranche B term loans, resulting in reduced interest rates and significant cash interest savings [1][2][3]. Group 1: Loan Repricing Details - The company repriced $2.6 billion and €0.8 billion secured tranche B term loans maturing in 2029, lowering the interest rate for USD loans from SOFR plus 250 basis points to SOFR plus 225 basis points, and for EUR loans from EURIBOR plus 300 basis points to EURIBOR plus 275 basis points [1]. - A voluntary prepayment of $110 million was made on the secured tranche B term loans, consisting of $69 million for the USD Term Loan B and €38 million for the EUR Term Loan B [2]. Group 2: Financial Impact - The combined actions of repricing and prepayment are expected to yield annualized cash interest savings of approximately $17 million based on current interest rates [2]. Group 3: Company Strategy and Leadership - The actions taken are in line with the company's strategy to proactively seek opportunities to reduce costs and maximize free cash flow for debt repayment, as stated by the President and CEO, John T.C. Lee [3]. Group 4: Financial Institutions Involved - JPMorgan Chase, Barclays, BofA Securities, Citibank, N.A., HSBC Securities (USA) Inc., Mizuho, Morgan Stanley Senior Funding, Inc., and PNC Capital Markets LLC acted as joint lead arrangers and joint bookrunners for the tranche B term loan repricing [4]. Group 5: Company Overview - MKS Instruments provides enabling technologies for semiconductor manufacturing, electronics, and specialty industrial applications, focusing on improving process performance and productivity [5].