Atotech announces the refinancing of the senior secured credit

BERLIN, March 18, 2021 (GLOBE NEWSWIRE) – Atotech Limited (NYSE: ATC) (“Atotech” or the “Company”), a leading company in specialty chemical technologies and market leader in advanced electroplating solutions, has announced today that it has completed the refinancing of its senior secured credit facilities. In particular, five of its indirect wholly owned subsidiaries – Alpha 3 BV, Alpha US BidCo, Inc., Atotech BV, Atotech Deutschland GmbH and Atotech Asia Pacific Limited (collectively, the “Borrowers”) have successfully refinanced the Credit Facilities existing senior guarantees of the Company. and entered into a new credit agreement (the “Credit Agreement”). The Credit Agreement provides for a senior secured US dollar denominated term loan facility with an initial aggregate principal amount of $ 1.35 billion (the “USD Term Loan”), a US dollar term loan facility. Senior guaranteed term denominated in Euro with an initial aggregate principal amount of € 200.0 million (the “Euro Term Loan”) and a senior secured multi-currency revolving credit facility which provides for loans renewable, letters of credit and ancillary facilities in an aggregate principal amount of up to $ 250.0 million (the “Revolving Credit Facility”)).

Peter Frauenknecht, Chief Financial Officer of Atotech, said: “We are delighted that we were able to complete the refinancing so quickly after our IPO last month. We are also very pleased with the pricing and lengthening of the terms of this transaction, which we believe reflects our reduced leverage following the IPO, and our strong business outlook. Assuming a stable rate environment, we expect our new debt structure to result in a significant annual reduction in interest expense. It also provides continued financial flexibility to invest in our business. “

The USD term loan and the EUR term loan mature in March 2028 and the net proceeds of borrowings therefrom have been used to finance the full refinancing of the Company’s existing term credit facilities, which were due to mature in January 2024, and to repay and repay replace its existing revolving credit agreement, which was due to expire in January 2022. The revolving credit facility expires in March 2026 and the resulting borrowings have been used to replace existing letters of credit under the Company’s old revolving credit facility. Future borrowings under the revolving credit facility are expected to be used to fund working capital and for other general corporate purposes, including authorized acquisitions and other investments.

The borrowings under the USD term loan bear interest at a floating rate of 250 basis points above LIBOR, with a minimum interest rate of 50 basis points. Borrowings under the EUR term loan bear interest at a floating rate of 275 basis points above EURIBOR, with a minimum interest rate of zero basis points and a potential decrease in the interest rate. based on leverage at 250 basis points above EURIBOR. The revolving credit facility bears interest at a floating rate of 200 basis points above LIBOR and a commitment fee of 37.5 basis points.

Goldman Sachs Bank USA serves as administrative agent and guarantee agent under the credit agreement and Goldman Sachs Bank USA, JPMorgan Chase Bank, NA, Barclays Bank Plc, Credit Suisse International, Credit Suisse Loan Funding LLC, Citibank, NA , London Branch, Unicredit Bank AG, Deutsche Bank Securities Inc., HSBC Trinkaus & Burkhardt AG, Standard Chartered Bank AG and TCG Senior Funding LLC all serve as lead organizers and associate bookkeepers.

Caution Regarding Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often relate to expected future business and financial performance as well as financial condition, and often contain words such as “expect”, “anticipate”, “intend”, “plan”. “,” Believe “,” seek “,” see “,” will “,” would “,” target “and similar expressions and variations or negatives of these words.

These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, are only predictions based on our current expectations and our projections of future events. There are significant factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by them. forward-looking statements, and these differences could be material. We assume no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.

Further information on potential factors that could affect Atotech’s actual results can be found in the “Forward-looking statements”, “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Atotech’s latest annual report on Form 20-F, and in other documents we have filed or provided to the US Securities and Exchange Commission, and such factors include, but are not limited to: the uncertainty of the magnitude, duration, geographic scope, impact on the global economy of the COVID 19 pandemic, as well as current and potential travel restrictions, stay-at-home orders and other restrictions economic measures implemented to deal with it; uncertainty, downturns and changes in our target markets; fluctuations in foreign currency exchange rates; reduced market acceptance and inability to keep pace with changing technology and trends; loss of customers; cost increases or reductions in raw material supplies that may have a material adverse effect on our business, financial condition and results of operations; our ability to provide products and services in light of changing laws and regulations relating to the environment, health and safety, product liability, finance and others; our inability to compete successfully in product development; our ability to successfully execute our growth initiatives, business strategies and operating plans; whether the secular trends that we expect to drive the growth of our business materialize to the extent that we expect them to, or not at all; material costs associated with environmental, health and safety requirements or responsibilities; underfunded defined benefit pension plans; the risk that the insurance we maintain will not fully cover all potential exposures; failure to comply with anti-corruption laws in the United States and various international jurisdictions; customs duties, border adjustment taxes or other adverse trade restrictions and their impacts on our clients’ value chains; political, economic and legal uncertainties in China, Chinese government control over currency conversion and expatriation of funds, and Chinese government policy on foreign investment in China; regulations regarding the production and use of chemicals that affect our products; the withdrawal of the United Kingdom from the European Union; weak intellectual property rights in jurisdictions outside the United States; claims for infringement of intellectual property and product liability; our substantial debt; our ability to raise additional capital on commercially reasonable terms may be limited; the risks associated with our derivative instruments; our ability to attract, motivate and retain senior management and qualified employees; increased risks to our global operations, including, but not limited to, political instability, acts of terrorism, taxation, and unexpected changes in regulatory and economic sanctions, among others; acts of God which may have a material adverse effect on our business, financial condition and results of operations; the inherently hazardous nature of chemical manufacturing which could result in accidents that disrupt our business and expose us to loss or liability; damage the reputation of our brand; Carlyle’s ability to control our common stocks; any statement of belief and statement of assumption underlying any of the foregoing; and other factors beyond our control.

About Atotech

Atotech is a leading specialty chemical technology company and a market leader in advanced electroplating solutions. Atotech provides chemistry, equipment, software and services for innovative technological applications through an integrated systems and solutions approach. Atotech solutions are used in a wide variety of end markets, including smartphones and other consumer electronics, communications infrastructure and computing, as well as in many industrial and consumer applications such as automotive, heavy machinery and household appliances.

Atotech, headquartered in Berlin, Germany, is a team of 4,000 experts in over 40 countries generating annual revenue of $ 1.2 billion (2020). Atotech has manufacturing operations across Europe, the Americas and Asia. With its well-established innovative strength and leading global TechCenter network, Atotech offers pioneering solutions combined with unmatched on-site support for more than 9,000 customers worldwide. For more information about Atotech, please visit us at atotech.com.


        

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