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Ineos sets sizes, prices on bond tranches in upsized €2.4 billion debt placement
By Paul A. Harris
Portland, Ore., Jan. 31 – Ineos Group increased the minimum sizes of the five-year senior secured notes tranches (Ba3/BB/BB+) in an upsized €2.4 billion equivalent bond and bank debt placement now in the market, according to sources.
A $725 million tranche of Ineos US Finance LLC notes launched at 7½%, at the tight end of the 7½% to 7¾% talk (initial guidance was 7¾% to 8%). The final tranche size comes relative to the $600 million minimum threshold set Tuesday, which was increased from the $500 million minimum threshold set earlier in the week. JPMorgan is the lead.
An €850 million tranche of Ineos Finance plc notes launched at 6 3/8%, at the tight end of yield talk in the 6½% area (initial guidance was 6½% to 6¾%). The final tranche size comes relative to the €700 million minimum threshold set on Tuesday, which was increased from the €400 million minimum threshold announced earlier in the week. Credit Agricole CIB, Goldman Sachs and JPMorgan are the leads.
The notes are set to allocate on Wednesday.
The notes in both Rule 144A and Regulation S tranches come with two years of call protection.
Proceeds plus $500 million and €425 million minimum of term loans will be used to refinance a portion of up to €640 million of secured debt, also to fund the $700 million acquisition of LyondellBasell’s ethylene oxide and derivatives business, to provide €400 million for an Ineos affiliate’s and TotalEnergies’ cracker and derivative assets in Lavera, France, and for general corporate purposes, including to pre-fund Project ONE, Ineos Group’s major capital investment in Antwerp, Belgium.
The overall financing, bonds and loans, increased to €2.4 billion equivalent from €2.1 billion equivalent on Tuesday, after upsizing from €2 billion equivalent earlier in the week.
Upsize proceeds will be used to tender for additional bonds.
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