MKS Instruments, Inc. announced on January 24, 2025, the successful completion of the repricing of its $2.5 billion and €0.6 billion secured tranche B term loans, which mature in 2029. This action reduced the interest rate for the USD tranche B term loans from SOFR plus 225 basis points to SOFR plus 200 basis points.
The repricing also lowered the interest rate for the EUR tranche B term loans from EURIBOR plus 275 basis points to EURIBOR plus 250 basis points. Concurrently with the repricing, MKS made a voluntary prepayment of $100 million on its USD tranche B term loans, reducing the principal amount from $2.6 billion to $2.5 billion.
Ram Mayampurath, Executive Vice President, Chief Financial Officer, and Treasurer, stated that these combined actions are expected to result in annualized cash interest savings of approximately $15 million. This demonstrates the company's commitment to deleveraging its balance sheet and proactively seeking opportunities to reduce costs and maximize free cash flow for debt repayment.
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