Kymera International secures $775M for debt refinancing and acquisitions
September 12, 2024
Kymera International, a specialty materials company headquartered in Raleigh, North Carolina, USA, has received a private credit loan of $775 million to refinance its existing debt and provide capital for add-on acquisitions, including its recent acquisition of Fiven, reports PitchBook, a financial data and software provider.
According to market sources, HPS provided the entirety of the facility and syndicated a small portion of the debt to other lenders. The facility included a term loan as well as a delayed-draw term loan. The company also has a separate Asset-Based Lending (ABL) facility held by KeyBanc and M&T.
Piper Sandler and Goldman Sachs served as financial advisors on the transaction, which was reported to have been dual tracked between the syndicated market and the private credit market.
“When you have a good credit like Kymera, with a history of growth and strong free cash flow conversion, you have financing options. Private credit has raised so much capital that it does create a viable alternative to the syndicated market, a dynamic that benefits the issuers,” Adam Shebitz, Palladium’s Head of Industrials, told PitchBook LCD.
Palladium first invested in Kymera in 2018, and since the buyout, the company’s EBITDA has reportedly tripled.
The company announced its agreement to acquire silicon carbide developer Fiven from OpenGate Capital on June 4.
“Given the fact that Kymera had an acquisition under LOI, we wanted a timely close and we wanted to avoid market flex on terms,” added Shebitz.
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