Ineos firms 2018 term loans at high end of talk, tweaks floors

By Sara Rosenberg

New York, Feb. 12 - Ineos set pricing on its roughly $2,607,000,000 term loan due May 4, 2018 at Libor plus 275 basis points, the wide end of the Libor plus 250 bps to 275 bps talk, and on its roughly €841 million term loan due May 4, 2018 at Euribor plus 300 bps, the high side of the Euribor plus 275 bps to 300 bps talk, according to a market source.

Also, the floors on both term loans were increased to 1% from 0.75% and the step-down provisions were removed, the source said.

Both senior secured covenant-light term loans still have a par offer price and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday.

Barclays and Bank of America Merrill Lynch are the joint global coordinators on the deal.

Proceeds will be used to reprice an existing U.S. term loan from Libor plus 300 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 325 bps with a 1% floor.

With the repricing, the company is seeking an amendment to certain provisions of its credit agreement.

The amendment was revised to remove the proposal to permit open market purchases of loans, the source added.

Ineos is a Switzerland-based manufacturer of petrochemicals, specialty chemicals and oil products.

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