MKS Instruments Completes Fourth Repricing of Secured Term Loan and Makes a Voluntary $50 Million Prepayment of Principal
In addition, the Company announced that it has made a voluntary
“We are very pleased to complete a fourth successful repricing of our existing secured term loan combined with our eighth voluntary prepayment. In less than two years since loan origination, we have reduced our non-GAAP interest expense by more than 70%, on an annualized basis, through these actions,” said Seth H. Bagshaw, Senior Vice President and Chief Financial Officer.
Use of Non-GAAP Financial Measure
Non-GAAP interest expense excludes amortization of debt issuance costs. This non-GAAP measure is not in accordance with U.S. Generally Accepted Accounting Principles (GAAP). MKS management believes the presentation of this non-GAAP financial measure is useful to investors for comparing prior periods and analyzing ongoing business trends and financial results. Annualized GAAP interest expense based upon $780 million principal outstanding and using the LIBOR based interest rate spread in effect on April 29, 2016, was $44 million and included $5 million in debt issuance costs. Annualized GAAP interest expense based upon $348 million in principal currently outstanding and LIBOR plus 175 basis points is
Senior Vice President, Chief Financial Officer and Treasurer
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Source: MKS Instruments, Inc.