Trinseo elects not to make scheduled interest payments amid debt talks

Trinseo PLC (OTC:TSEOF) disclosed Tuesday that it and certain subsidiaries have elected not to make scheduled interest payments totaling approximately $38 million under its credit facilities, including a payment due under the Credit Agreement dated September 8, 2023. The company stated that this decision is related to ongoing discussions with financial stakeholders regarding its capital structure.

According to the company’s statement, the non-payment of interest, once applicable grace periods expire, will constitute events of default under certain debt agreements. Trinseo reported that it and some subsidiaries have entered into amendments and limited waivers with lenders under some debt agreements. These waivers temporarily suspend certain acceleration and collateral enforcement rights until April 30, 2026, in connection with the nonpayment of interest and related defaults.

The company also noted that its 7.625% second lien secured notes due 2029 are subject to an intercreditor agreement. Under this agreement, holders of these notes are restricted from enforcing collection actions against the collateral securing the notes for 180 days following any acceleration of obligations due to an event of default. As of the filing date, Trinseo said that no notice or declaration of acceleration has been made with respect to these notes.

Trinseo stated that there is no assurance it will reach an agreement with its financial stakeholders regarding its capital structure or that any particular transaction will be completed. The company said it intends to continue discussions with its stakeholders.

This information is based on a statement made in a filing with the U.S. Securities and Exchange Commission.

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