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PolyOne
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PolyOne Announces Asset Realignment in Brazil
Patterson, president and chief executive officer, PolyOne Corporation.
About PolyOne
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PolyOne’s chief executive officer uses these financial measures to monitor and evaluate the ongoing performance of the Company
and each business segment and to allocate resources.
In addition, adjusted operating income and adjusted EPS, which exclude the
impact of special items, are components of various PolyOne annual and long-term employee incentive plans.
Sources
Cash from Balance Sheet $465
New Senior Unsecured Notes 650
New Equity 450
Total Sources $1,565
Uses
Clariant Masterbatch $1,500
Clariant India Masterbatch 60
Less: Lease Adjustment (113)
Net Purchase Price $1,447
Net Cash Acquired 57
Fees, Expenses & OID 61
Total Uses $1,565
($ Millions)
Cash and Cash Equivalents $370
$450M Senior Secured ABL Revolver -
Senior Secured Term Loan B due 2026 624
Other Debt 25
Total Senior Secured Debt $649
5.25% Senior Unsecured Notes due 2023 $600
New Senior Unsecured Notes 650
Total Senior Debt $1,899
Net Debt $1,529
New Equity $450
Pro Forma Capitalization
(1)
PF 12/31/2019
$450
$600 $624
$743
2019 2020 2021 2022 2023 2024 2025 2026
A T T R A C T I V E F I N A N C I N G S T R U C T U R E
Attractive Debt
Maturity Profile
Existing Revolver Existing Senior Notes Existing Term Loan B
New Debt
Financing
Financing
Summary
Terms on
New Debt
$465 million of cash from the balance sheet expected to fund a portion of the purchase price
Bridge financing for remainder fully committed from Citi, Morgan Stanley and Wells Fargo
Permanent financing expected to include a combination of long-term debt and new equity
The timing of the permanent financing is subject to a number of factors, including, but not limited
to, market conditions
PolyOne is committed to preserving a strong balance sheet
– Target net leverage at close below 3.5x, excluding synergies
Pro forma capital structure positions PolyOne with flexibility to pursue continued growth strategy
New financing expected to have same or better covenant package than existing capital structure
Capital structure would be “covenant lite”
Capital
Policy
Transaction in line with PolyOne’s disciplined capital allocation policy
Existing PolyOne dividend policy to be maintained
Focus on deleveraging in the near term
2028+
PolyOne Corporation 26
PolyOne Corporation 27
T H E N E W P O L Y O N E : A S P E C I A L T Y G R O W T H C O M P A N Y
Landmark portfolio transformation: > 85% of Adjusted EBITDA
from specialty solutions
World-class innovation, technology and service are differentiators
Sustainability initiatives and alignment with megatrends drive
above market growth in key end markets and applications:
Capital management is a strength - proven track record of
expanding ROIC while increasing invested capital
Transaction expected to add $0.85 to pro forma adjusted EPS
PolyOne Corporation 28
PolyOne Corporation 29
https://www.avient.com/sites/default/files/2021-05/avnt-tpe-beginner-guide-fin.pdf
One of the most commonly cited advantages of TPEs is the ability to
produce products via high-volume injection molding, which is an extremely cost-
effective process.
For one, you can’t put a product or device
made with TPEs in the oven at 400 degrees Fahrenheit (F), which you can do with
silicone.
Diving Deeper into TPEs
https://www.avient.com/discover-tpes-healthcare
https://www.avient.com/polyone-develops-new-silicone-alternative-tpe-medical-tubing
Taking the
Next Steps
More technical and detailed information on thermoplastic elastomers
can be found on our TPE Knowledge Center and TPE FAQ page.
https://www.avient.com/products/polymer-colorants/solid-color-masterbatches/oncolor-nir-sortable-colorants
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Browse our library of product data sheets containing technical descriptions and details.
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Blue tone
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PRODUCT BULLETIN
SynPlicity™ 1000
Cosmetic Ester
PRODUCT DESCRIPTION
Compelled by public regulation and private
safety concerns, cosmetic companies that
have historically used fast gelling, high
solvating plasticizers are reformulating
their products with bio-derived and
non-phthalate chemistries.
PolyOne makes no warranties or guarantees respecting suitability of either PolyOne’s products or the information for your process or end-use
application.
PROPERTY TEST METHOD NOMINAL VALUE
Specific Gravity (25/25°C) ASTM D-891 0.950–0.956
Acid Number (mg KOH/g) AOCS Cd 3d-63 < 1.00
Appearance ASTM D-2090 Clear
Color (Pt-Co Scale) ASTM D-1209 < 100
Molecular Weight – Theoretical, approximate 316
Oxirane Content (wt%) AOCS Cd 9-57 > 6.4
Water Content (wt%) ASTM E-1064 < 0.15
TECHNICAL PROPERTIES
To learn more about SynPlicity™ 1000 Cosmetic Ester, contact PolyOne at
1.866.POLYONE (1.866.765.9663)
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