Sensient Technologies Corporation Enters into New Fixed Rate, Senior Note Purchase Agreement
November 01, 2018 at 05:01 pm EDT
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On November 1, 2018, Sensient Technologies Corporation entered into a new fixed rate, senior note purchase agreement with a group of financial institutions including New York Life Insurance Company, Metropolitan Life Insurance Company, and The Prudential Insurance Company of America. The notes include $25,000,000 of U.S. dollar denominated seven-year 4.19% senior notes; £25,000,000 of Sterling denominated five-year 2.53% senior notes; and £25,000,000 of Sterling denominated seven-year 2.76% senior notes. The new five-year notes will mature in November 2023, and the new seven-year notes will mature in November 2025. Funds were received on November 1, 2018, and the proceeds were used to refinance existing indebtedness. Similar to Sensient’s other debt agreements, the note purchase agreement requires Sensient to maintain a ratio of consolidated total funded debt to consolidated EBITDA (Leverage Ratio) of not more than 3.50 to 1.00, and a fixed charge coverage ratio of not less than 2.00 to 1.00. The note purchase agreement also includes other financial covenants that are customary in transactions of this type and similar to those in Sensient’s existing debt agreements.
Sensient Technologies Corporation is a global manufacturer and marketer of colors, flavors, and other specialty ingredients. The Company operates through three segments: Flavors & Extracts, Color and the Asia Pacific. The Flavors & Extracts and Color segments are managed on a product basis. The Companyâs Flavors & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristic to a range of consumer and other products. The Color segment produces natural and synthetic color systems for foods, beverages, pharmaceuticals, and nutraceuticals; colors, ingredients, and systems for personal care; and technical colors for industrial applications. Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products for the Asia Pacific countries. Its natural ingredients business produces dehydrated garlic, onion, and other natural ingredients for food processors.