New Issue: Ineos prices downsized $775 million eight-year notes at par to yield 7½%

By Paul A. Harris

Portland, Ore., April 26 - Ineos Finance plc priced a massively downsized $775 million issue of eight-year senior secured notes (B1/B+) at par to yield 7½% on Thursday, according to market sources.

The yield printed the tight end of the 7½% to 7 5/8% yield talk. That talk had been revised lower from previous talk of 7 5/8% to 7 7/8%.

The notes offering was reduced from the originally announced amount of $2.2 billion equivalent. Proceeds were shifted to a bank loan that the company is currently arranging.

A contemplated euro tranche was withdrawn.

J.P. Morgan Securities LLC and Barclays Bank PLC were the joint global coordinators and joint bookrunners. Goldman Sachs International and UBS Ltd. were joint bookrunners.

The Lyndhurst, England-based chemical company plans to use the proceeds to refinance bank debt.

Issuer:	Ineos Finance plc
Amount:	$775 million, decreased from $2.2 billion equivalent with proceeds shifted to the bank loan
Maturity:	May 1, 2020
Securities:	Senior secured notes
Joint global coordinators and bookrunners:	J.P. Morgan Securities LLC, Barclays Bank plc
Joint bookrunners:	Goldman Sachs International, UBS Ltd.
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	594 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2015, then callable at 105.625, 103.75, 101.875, par on and after May 1, 2018
Equity clawback:	35% at 107.50 until May 1, 2015
Change of control put:	101%
Trade date:	April 26
Settlement date:	May 4
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	7½% to 7 5/8%, revised downward from previous talk of 7 5/8% to 7 7/8%
Marketing:	Roadshow

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