Element Solutions Inc. Enters Material Definitive Agreement

TL;DR

ESI inked a big deal on Oct 15, 2024 - expect financial updates.

AI Summary

On October 15, 2024, Element Solutions Inc. entered into a material definitive agreement related to a direct financial obligation. The company, formerly known as Platform Specialty Products Corp, filed an 8-K report detailing this event.

Why It Matters

This filing indicates a significant financial commitment or obligation for Element Solutions Inc., which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements can introduce new financial obligations or strategic shifts that carry inherent risks.

Key Players & Entities

• Element Solutions Inc (company) — Registrant
• Platform Specialty Products Corp (company) — Former company name
• October 15, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ESI New York Stock Exchange
• $1,141,375,000 — the refinancing in part of its existing $1,141,375,000 tranche B-2 term loans (the "Existing T
• $1,041,375,000 — ars in an aggregate principal amount of $1,041,375,000 (the "Refinanced TLBs") and reducing th
• $100 million — refinancing, the Company also paid down $100 million of Existing TLBs, reducing the Company'

Filing Documents

• esi-20241015.htm (8-K) — 49KB
• esi8-k102024exx101.htm (EX-10) — 1713KB
• esi-20241015_g1.jpg (GRAPHIC) — 286KB
• 0001590714-24-000140.txt ( ) — 2846KB
• esi-20241015.xsd (EX-101.SCH) — 2KB
• esi-20241015_lab.xml (EX-101.LAB) — 23KB
• esi-20241015_pre.xml (EX-101.PRE) — 13KB
• esi-20241015_htm.xml (XML) — 3KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. Term Loans Paydown and Refinancing On October 15, 2024, Element Solutions Inc (the "Company"), MacDermid, Incorporated ("MacDermid," and together with the Company, the "Borrowers"), certain subsidiaries of the Company party thereto, Citibank, N.A., as collateral agent and administrative agent (the "Agent"), and the lenders party thereto, entered into an Amendment No. 9 and Joinder to Credit Agreement ("Amendment No. 9"), which amended that certain credit agreement, dated as of January 31, 2019 (as amended and/or supplemented from time to time, the "Credit Agreement"), among the Borrowers, certain subsidiaries of the Company from time to time parties thereto, the Agent and the lending institutions from time to time parties thereto. Amendment No. 9 provided for the refinancing in part of its existing $1,141,375,000 tranche B-2 term loans (the "Existing TLBs") by creating a new tranche B-3 of term loans denominated in U.S. dollars in an aggregate principal amount of $1,041,375,000 (the "Refinanced TLBs") and reducing the interest rate applicable to the Refinanced TLBs by 25 basis points. In connection with the refinancing, the Company also paid down $100 million of Existing TLBs, reducing the Company's borrowings under the Credit Agreement to $1,041,375,000. Concurrently with the creation of the Refinanced TLBs, the proceeds of the Refinanced TLBs of $1,041,375,000 (less an original issue discount of 12.5bps) were used to prepay in full the remaining balance of the Existing TLBs. Borrowings under the Refinanced TLBs bear interest at a rate per annum based on the type of loan selected by the Company: (a) for Term SOFR (as defined in the Credit Agreement) loans, a Term SOFR rate, subject to a rate floor of 0, plus a spread of 1.75%, and (b) for base rate loans, a rate equal to the highest of the applicable (i) Federal Funds rate plus 0.50%, (ii) prime rate as quoted by The Wall Street Journal, and (iii) Term SOFR

03. Creation of a Direct Financial Obligation

Item 2.03. Creation of a Direct Financial Obligation. The information set forth under Item 1.01 regarding Amendment No. 9 and the swaps is incorporated by reference herein.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibits are filed or furnished herewith: Exhibit Number Description 10.1* Amendment No.9 to Credit Agreement, dated October 15, 2024 , among, inter alios, the Company, MacDermid, the subsidiaries of the Company from time to time parties thereto, the lenders from time to time parties thereto, and Citibank, N.A., as administrative and collateral agent . Annexes, other than Annex I, schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Amendment No. 9 and Annex I, as filed, identify such annexes, schedules and exhibits as well as the general nature of their contents. The Company agrees to furnish a copy of any omitted attachment to the Securities and Exchange commission on a confidential basis upon request. 10.2 Credit Agreement, dated as of January 31, 2019, by and among, inter alia, the Company, MacDermid, the subsidiaries of the borrowers from time to time parties thereto, the lenders from time to time parties thereto, Credit Suisse Loan Funding LLC, as syndication agent, and Barclays Bank PLC, as administrative agent and collateral agent (filed as Exhibit 10.1 of the Company's Current Report on Form 8-K filed on February 5, 2019, and incorporated herein by reference) 10.3 Amendment No.8 to Credit Agreement, dated December 18, 2023, among, inter alios, the Company, MacDermid, the subsidiaries of the Company from time to time parties thereto, the lenders from time to time parties thereto, and Citibank, N.A., as administrative and collateral agent (filed as Exhibit 10.1 of the Company's Current Report on Form 8-K filed on December 22, 2023, and incorporated herein by reference) 10.4 Amendment No.7 to Credit Agreement, dated June 1, 2023, among, inter alios, the Company, MacDermid, the subsidiaries of the Company from time to time parties thereto, the lenders from time to time parties thereto, and Citibank, N.A., as administrative and collateral agent

View Full Filing

View this 8-K filing on SEC EDGAR