PolyOne, a provider of specialised polymer materials, services and solutions, has completed the purchase of ColorMatrix.
Following the acquisition, PolyOne gained a new $300m Term Loan B, replaced its expiring accounts receivable securitisation facility by $300m asset-based revolving credit facility, and redeemed its remaining 2012 senior notes.
The company said that the new six-year Term Loan B has an initial coupon of 5% with yield of 5.60% inclusive of original issue discount and fees.
The five-year revolving credit facility is undrawn and has current availability of approximately $150m.
PolyOne chairman, president and CEO Stephen Newlin said the acquisition marks a significant milestone in PolyOne's transformation to a global speciality company.
"We have said before that this is a game-changer for PolyOne, as we now expect to derive more than 50% of our earnings from our speciality platform," Newlin added.
"I am confident that we will be able to accelerate growth and expand our leading market positions as we leverage ColorMatrix's proprietary technology and PolyOne's commercial resources and global scale."
PolyOne executive vice-president and chief financial officer Robert Patterson said that there was substantial investor interest in their new credit facilities.
"I attribute this to our strong track record of free cash flow generation and the significant improvement in the underlying mix of our earnings," Patterson added.
ColorMatrix manufactures performance-enhancing specialty additives, liquid colorant and dosing technologies for a number of markets.
Its product portfolio includes colorant for fluoropolymers and specialty additives that support the high-performance properties of fluoropolymers.
ColorMatrix acquired Gayson in April 2011, expanding its product range to include enhanced custom colour dispersions used in silicone processing for medical, consumer and automotive applications.
