MKS Instruments (MKSI) Announces Making $60M Term Loan Prepayment; Enters Interest Rate Swap Agreement

October 3, 2016 4:19 PM EDT

Find out which companies are about to raise their dividend well before the news hits the Street with's Dividend Insider Elite. Sign-up for a FREE trial here.

MKS Instruments, Inc. (Nasdaq: MKSI) made a $60 million voluntary principal prepayment on its term loan. The prepayment was made through a tax efficient repatriation of cash from international operations. This prepayment is in addition to a scheduled principal payment of $1.8 million and reduces the outstanding principal amount of the term loan to $668 million as of September 30, 2016.

In addition, the Company also entered into an interest rate swap agreement to fix the rate on approximately 50% of its remaining outstanding term loan balance. The swap converts the floating rate on $335 million of the outstanding principal amount of the term loan to a fixed interest rate of 4.70% through September 2020.

“This represents our second voluntary term loan prepayment in the last four months, bringing our total voluntary prepayments to $110 million, and demonstrates our continued commitment to deleveraging our balance sheet and minimizing our cost of capital,” said Seth H. Bagshaw, Vice President and Chief Financial Officer. “The execution of the interest rate swap aligns with our strategy to prudently manage our interest rate risk.”

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Management Comments

Related Entities

Definitive Agreement

Add Your Comment