MKS Instruments Completes Fifth Amendment to Credit Agreement and Voluntarily Repays $100 Million in Loans

MKS Instruments Inc. (NASDAQ: MKSI) announced on January 24, 2025, that it had entered into the Fifth Amendment to its Credit Agreement. The Amendment refines the Credit Agreement dated August 17, 2022, with various lenders and JPMorgan Chase Bank, N.A. It brought about significant changes to the existing loans structure, including refinancing senior secured tranche B term loans with a new $2,529 million senior secured tranche B term loan (USD Tranche B) and a new €596 million senior secured tranche B term loan (Euro Tranche B).

The Amendment also resulted in a decrease in the applicable margin for the USD Tranche B and Euro Tranche B loans, thus optimizing the terms for the company. Concurrently with this agreement, MKS Instruments made a voluntary prepayment of $100 million of the USD Tranche B loans. This action reduced the principal amount of USD Tranche B loans from $2,629 million to $2,529 million.

The company emphasized that the repriced loans were issued without any original issue discount. In conjunction with executing the Fifth Amendment, MKS Instruments settled customary fees and expenses of JPMorgan Chase Bank, N.A.

The precise details of the Fifth Amendment can be found in Exhibit 10.1 within the filed Current Report on Form 8-K.

By making this strategic move, MKS Instruments continues to underscore its efforts towards optimizing its financial position and cash flows, further enhancing its ability to service its debt obligations. This step aligns with the company’s commitment to proactively manage its liquidity and strengthen its financial standing.

Additionally, on January 24, 2025, MKS Instruments issued a press release regarding the Fifth Amendment, outlining the key modifications made to the Credit Agreement. The press release is attached as Exhibit 99.1 to the same Form 8-K filing.

Investors and stakeholders interested in further financial details and official communications from MKS Instruments can reference the full Fifth Amendment document filed February 24, 2025, on the Securities and Exchange Commission’s EDGAR database under MKS Instruments’ CIK code 00001049502.

This press release may include forward-looking statements subject to risks and uncertainties outlined in MKS Instruments’ filings with the Securities and Exchange Commission.

For more information about MKS Instruments and its operations, visit www.mks.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MKS Instruments’s 8K filing here.

About MKS Instruments

MKS Instruments, Inc provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications in the United States, Germany, China, South Korea, and internationally. It operates through Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Material Solutions Division (MSD) segments.