Ineos Quattro upsizes term B again, sets tranche sizes, cuts pricing

By Sara Rosenberg

New York, Jan. 20 – Ineos Quattro upsized its U.S. and euro five-year first-lien term loan B (BB/BB+) to €3.15 billion equivalent from a revised amount of €2.9 billion equivalent and an initial size of €2.6 billion equivalent, according to a market source.

In addition, tranche sizes finalized, with the U.S. term loan piece sized at $2 billion and the euro term loan piece sized at €1.5 billion, the source said.

Also, pricing on the term loan debt was reduced to Libor/Euribor plus 275 basis points from revised talk of Libor/Euribor plus 300 bps and initial talk of Libor/Euribor plus 325 bps to 350 bps.

Furthermore, the original issue discount on the U.S. and euro term loans firmed at 99.5, the tight end of revised talk of 99.25 to 99.5 and initial talk of 99 to 99.5, the source continued.

As before, the U.S. tranche has a 0.5% Libor floor, the euro piece has a 0% floor and all of the debt 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 for the U.S. term loan B were scheduled to be due at 5 p.m. ET on Wednesday, and commitments for the euro term loan B are due at 5 a.m. ET on Thursday, 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, pay transaction related fees and expenses, and, due to the term loan B upsizing, to repay in full an existing euro term loan A.

Other funds for the transaction will come from cash on hand, $500 million of senior secured notes and €800 million of senior secured notes, which were recently upsized from a total senior secured notes amount of €1 billion equivalent, and €500 million of senior unsecured notes, which were recently downsized from €1 billion.

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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