Trinseo PLC ( TSE ) shares are trading higher after the company announced it secured a transaction support agreement with key holders of its senior notes and term loans.

As per the transaction support agreement, these creditors will support transactions aimed at refinancing near-term maturities, enhancing operating liquidity, extending the nearest debt maturity to 2028, and capturing a discount through an exchange of the company's 2029 senior notes.

Trinseo ( TSE ) plans to redeem and refinance its $115 million in 2025 Senior Notes by issuing $115 million in 2028 Refinance Term Loans.

These loans will carry terms similar to the credit facility established in September 2023.

At least $330 million of 2029 Senior Notes will be exchanged for new 2029 Second Lien Senior Secured Notes at a discount to their face value. This exchange will allow Trinseo ( TSE ) to capture at least $49 million in value from Supporting Creditors.

The company will establish a new $300 million revolving credit facility with a reset springing covenant and a maturity date of February 2028.

This facility will be immediately available and will replace the existing facility set to mature in May 2026.

Frank Bozich, Trinseo’s President and Chief Executive Officer, said, “This transaction significantly strengthens our ability to implement key strategic initiatives that support our ongoing transformation as a leading provider of specialty materials and sustainable solutions.”

”The added financial flexibility gives us more runway to thoughtfully focus on optimizing our portfolio, invest in our leading circular technologies, and further solidify our financial position.”

As of September 30, Trinseo ( TSE ) had cash of $167 million, including $2 million in restricted cash, and had approximately $177 million in additional liquidity available through two committed financing facilities.

Price Action: TSE shares are up 31.2% at $5.85 at the last check Tuesday.

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