Blue Ash, Ohio — Milacron Holdings Corp. announced Jan. 25 that its wholly owned subsidiary, Milacron LLC, will refinance its term loan.
Milacron officials expect the refinancing to reduce the company's annual interest costs by about $19 million, after taxes, on a pro forma basis.
Milacron said it has received notice that its new $947 million term loan facility has been allocated to lenders. The transaction is expected to close on Feb. 15. The new term loan has a maturity of Sept. 28, 2023.
The new term loan will bear an interest rate of the LIBOR interest rate index, plus 3 percent per year. The interest rate can fall to LIBOR plus 2.75 percent if Milacron's net total leverage drops below a specific amount.
Milacron plans to use proceeds of the new term loan facility, together with cash on hand, to repay the company's existing $482 million term loan facility and its $464.4 million of outstanding 7.75 percent senior notes that come due in 2021, as well as pay about $26 million in fees and expenses from the refinancing transactions.
Milacron, based in Blue Ash, a suburb of Cincinnati, is traded on the New York Stock Exchange. In late December, Milacron announced that selling stockholders are planning a secondary offering of stock, and the company filed a prospectus. All proceeds from that stock sale will go to the stockholders who sell, and the company will not receive of the money, according to the prospectus.
In other news, several financial firms and institutional investors have recently increased their holdings in Milacron, according to the website, the DailyQuint. The two biggest stockholders involved were TimesSquare Capital Management LLC bought 467,365 shares in the third quarter of last year, boosting its stake in the company by 20.7 percent, for a total of 2,719,795 shares; and Wells Fargo & Co./MN, which raised its position by 3.5 percent in the third quarter, and now owns 1,009,140 shares of the company, the DailyQuint reported.
The company's largest shareholder, private equity firm CCMP Capital Advisors LLC, owns more than half of Milacron's shares.
Milacron will have 68,065,840 shares of common stock after the secondary offering, according to the prospectus.