Ineos Quattro lifts term loan B to €2.9 billion, updates pricing

By Sara Rosenberg

New York, Jan. 19 – Ineos Quattro upsized its U.S. and euro five-year first-lien term loan B to €2.9 billion equivalent from €2.6 billion equivalent, according to a market source. Sizes of the U.S. and euro tranches are still to be determined.

In addition, pricing on the U.S. and euro term loan tranches were reduced to Libor/Euribor plus 300 basis points from talk in the range of Libor/Euribor plus 325 bps to 350 bps, the source said.

Furthermore, the original issue discount talk on the U.S. and euro term loans was changed to a range of 99.25 to 99.5 from a range of 99 to 99.5.

The U.S. tranche still has a 0.5% Libor floor, the euro piece still has a 0% floor and all of the debt still has 101 soft call protection for six months.

JPMorgan, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs and HSBC are the bookrunners on the U.S. tranche, with JPMorgan the left lead. BNP, Goldman Sachs and JPMorgan are the joint physical bookrunners on the euro tranche, and Barclays, Citigroup and HSBC are bookrunners. Other joint bookrunners on the debt include BofA Securities Inc., Commerzbank, Credit Suisse, Lloyds, Mizuho, Morgan Stanley, NatWest, ABN Amro, Credit Agricole, Deutsche Bank, ING, Intesa, Santander, Fifth Third and ICBC. Mandated lead arrangers are KBC and MUFG. JPMorgan is the administrative agent.

Commitments continue to be due at noon ET on Wednesday, the source added.

Proceeds will be used to repay bridge loans incurred to fund the acquisition of BP’s Aromatics and Acetyls businesses, refinance the existing Inovyn term loan B, fund the full amount of deferred consideration owed to BP and pay transaction related fees and expenses.

Other funds for the transaction will come from €1.2 billion equivalent of senior secured notes, upsized from €1 billion equivalent, €500 million of senior unsecured notes, downsized from €1 billion, and cash on hand.

The company is also seeking a technical amendment to its existing $202 million term loan B due January 2027 and its existing €450 million term loan B due January 2027.

Pricing on the existing term loans will be unchanged at Libor plus 200 bps with a 0% Libor floor on the U.S. piece and Euribor plus 200 bps with a 0.5% floor on the euro piece.

BNP, Goldman Sachs and JPMorgan are the joint global coordinators on the existing term loans, and Barclays is the administrative agent.

Consents to the amendment were scheduled to be due at noon ET on Tuesday.

Ineos Quattro is a chemicals company that was created through the combination of two of Ineos’ existing businesses, Ineos Styrolution and Inovyn, and BP’s Aromatics and Acetyls businesses.

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