By Lisa Kerner and Sara Rosenberg
Charlotte, N.C., Oct. 22 – Styrolution (Styrolution Group GmbH and Styrolution US Holding LLC) will use a €200 million second-lien PIK toggle loan that is fully subscribed by Ineos Group Holdings to help fund Ineos’ acquisition of BASF SE’s 50% share in Styrolution and to redeem Styrolution’s existing 7 5/8% senior secured notes due 2016.
BASF will become a wholly owned standalone company within Ineos.
The second-lien loan is priced at 9½% cash/10¼% PIK and has a mandatory PIK feature if net total leverage is more than 3.25 times, according to a market source.
Styrolution initially had planned on getting €400 million of junior debt, so now the company plans to make up the remaining €200 million acquisition consideration with equity contributed by Ineos AG.
The company is also using proceeds from its €1.05 billion equivalent five-year covenant-light term loan B. Barclays and J.P. Morgan Securities LLC are the joint global coordinators.
Styrolution is a Frankfurt, Germany-based styrenics supplier.
| Issuer: | Styrolution Group GmbH and Styrolution US Holding LLC
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| Issue: | Second-lien PIK toggle loan
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| Amount: | €200 million
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| Coupon: | 9½% cash/10¼% PIK
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| Lender: | Ineos Group Holdings
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