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MKS Instruments Makes a Voluntary $50 Million Prepayment on its Term Loan

Jul 1, 2019

ANDOVER, Mass., July 01, 2019 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of technologies that enable advanced processes and improve productivity, today announced that it has made a voluntary $50 million prepayment of principal on its secured term loan reducing the outstanding principal to $947 million as of June 28, 2019, from approximately $1 billion as of March 31, 2019.

“We are pleased to complete our ninth voluntary prepayment, demonstrating our commitment to reduce our leverage and cost of capital.  Since loan origination in 2016, our pre-payments have totaled $475 million, and this $50 million prepayment is the first since we closed the acquisition of Electro Scientific Industries, Inc. on February 1, 2019.  Based upon current interest rate, this prepayment reduces our annualized non-GAAP interest expense by approximately $2.3 million,” said Seth H. Bagshaw, Senior Vice President and Chief Financial Officer.

About MKS Instruments

MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measure, monitor, deliver, analyze, power and control critical parameters of advanced manufacturing processes to improve process performance and productivity for our customers. Our products are derived from our core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control technology, ozone generation and delivery, power, reactive gas generation, vacuum technology, lasers, photonics, sub-micron positioning, vibration control, optics and laser-based manufacturing solutions. We also provide services relating to the maintenance and repair of our products, installation services and training. Our primary served markets include semiconductor, industrial technologies, life and health sciences, research and defense.  Additional information can be found at www.mksinst.com.

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.  On an annualized basis, GAAP interest savings, at current interest rate, is approximately $2.6 million, which includes $0.3 million of amortization of deferred financing costs.  

Forward-Looking Statements

This release contains a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act regarding MKS' interest expense.  This statement is only a prediction. Actual events or results may differ materially from those in the forward-looking statement set forth herein.  Readers are referred to MKS' filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for a discussion of these and other important risk factors concerning MKS and its operations.  MKS is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact: 
Seth H. Bagshaw
Senior Vice President, Chief Financial Officer and Treasurer
Telephone:  978.645.5578
Email:  seth_bagshaw@mksinst.com

Investor Relations Contacts: 
Monica Gould
The Blueshirt Group
Telephone:  212.871.3927
Email:  monica@blueshirtgroup.com

Lindsay Grant Savarese
The Blueshirt Group
Telephone:  212.331.8417
Email:  lindsay@blueshirtgroup.com

MKS Instruments logo

Source: MKS Instruments, Inc.