Trinseo Partners with KKR for New Receivables Financing Facility

Trinseo PLC, a specialty material solutions provider, has announced that its special purpose finance entity, Styron Receivables Funding Designated Activity Company, secured a $150 million non-recourse financing facility with credit funds and accounts managed by KKR, a prominent global investment firm. This new facility, collateralized by trade receivables from Trinseo and its subsidiaries, serves as a replacement for a prior facility of the same amount, which is set to mature in November 2025. This move aims to enhance Trinseo's financial flexibility and stability by leveraging its receivables portfolio.

Frank Bozich, President and CEO of Trinseo, expressed his excitement about securing support from the leading capital provider KKR. He emphasized that the new facility, which replaces an existing one of the same size, brings significant advantages, such as the absence of minimum liquidity covenants and an extended maturity date to December 2027. These enhancements offer Trinseo increased financial flexibility for the next several years, which is crucial as the company continues to transform its portfolio. Bozich believes that this partnership with KKR will enable Trinseo to better navigate the evolving market landscape and achieve its strategic objectives.

Giacomo Picco, a Managing Director at KKR, expressed his satisfaction with utilizing their extensive experience in global receivables financing to support Trinseo. He highlighted that this capital will aid Trinseo's continued growth and enable the company to supply critical materials to a wide range of essential markets worldwide. Picco emphasized the importance of this partnership in reinforcing Trinseo's capacity to meet global demand and sustain its market presence, showcasing KKR's commitment to fostering growth and innovation in the industries they invest in.

Trinseo positions itself as a strategic partner, collaborating with clients to translate innovative concepts into tangible, high-performance products. The company's deep-rooted expertise, coupled with a forward-thinking approach to materials science, enables it to deliver comprehensive solutions across the product lifecycle. By aligning its capabilities with the evolving needs of industries such as construction, consumer goods, healthcare, and automotive, Trinseo drives value creation through material innovation. The company's commitment to understanding and addressing customer challenges positions it as a preferred partner for developing new and improved products that meet the demands of today's dynamic marketplace.

KKR, a prominent global investment firm, specializes in alternative asset management, capital markets, and insurance solutions. Their investment strategy centers on a patient approach, leveraging top talent to drive growth within portfolio companies and their communities. KKR is a leading global investment firm specializing in alternative asset management. The firm manages investment funds focused on private equity, credit, and real assets, and also maintains strategic partnerships in hedge fund management. The firm's insurance arm, Global Atlantic Financial Group, provides retirement, life, and reinsurance products.