By Paul A. Harris
Portland, Ore., Jan. 31 – Ineos Group sold two tranches of five-year senior secured notes (Ba3/BB/BB+) in an upsized €2.4 billion equivalent bond and bank debt placement on Wednesday, according to market sources.
A $725 million tranche of Ineos US Finance LLC notes priced at par to yield 7½%, at the tight end of the 7½% to 7¾% talk (initial guidance was 7¾% to 8%).
An €850 million tranche of Ineos Finance plc notes priced at par to yield 6 3/8%, at the tight end of yield talk in the 6½% area (initial guidance was 6½% to 6¾%).
JPMorgan was the lead on the dollar-denominated tranche. On the euro-denominated notes, Credit Agricole CIB, Goldman Sachs and JPMorgan were the leads.
Proceeds plus $500 million and €425 million of term loans will be used to refinance 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 from €2.1 billion equivalent on Tuesday after upsizing from €2 billion equivalent earlier in the week.
Proceeds resulting from the upsizing will be used to tender for additional bonds.
| Issuer: | Ineos Group
|
| Issue: | Senior secured notes
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| Maturity: | April 15, 2029
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| Call protection: | Two years
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| Trade date: | Jan. 31
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| Settlement date: | Feb. 7
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| Ratings: | Moody’s: Ba3
|
| S&P: BB
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| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Dollar notes
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| Issuer: | Ineos US Finance LLC
|
| Amount: | $725 million
|
| Lead: | JPMorgan
|
| Coupon: | 7½%
|
| Price: | Par
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| Yield: | 7½%
|
| Price talk: | 7½% to 7¾%
|
|
|
| Euro notes
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| Issuer: | Ineos Finance plc
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| Amount: | €850 million
|
| Leads: | Credit Agricole CIB, Goldman Sachs and JPMorgan
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Price talk: | 6½% area
|
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