Ineos Quattro downsizes U.S. and euro term loans, sets OID at 97

By Sara Rosenberg

New York, Nov. 8 – Ineos Quattro scaled back its U.S. term loan B due March 2029 to roughly $1.1 billion from roughly $1.25 billion and its euro term loan B due March 2029 to about €800 million from €850 million, according to a market source.

Also, the original issue discount on both term loans finalized at 97, the wide end of the 97 to 98 talk, and MFN was revised, the source said.

Pricing on the U.S. term loan remained at SOFR+10 basis points CSA plus 425 bps with a 0% floor and pricing on the euro term loan remained at Euribor plus 450 bps with a 0% floor.

The term loans still have 101 soft call protection for one year.

JPMorgan Chase Bank is the left lead bookrunner on the U.S. term loan. BNP Paribas, Citigroup Global Markets Inc. and JPMorgan are the joint physical bookrunners and joint global coordinators on the euro term loan. Credit Agricole, CCB, Commerzbank, FAB, Goldman Sachs (joint global coordinator), HSBC Securities, ING, ICBC, KBC and Mizuho are joint bookrunners. JPMorgan is the administrative agent.

Recommitments are due at 9 a.m. ET on Thursday, the source added.

Proceeds will be used with €800 million equivalent of U.S. and euro senior secured notes to partially refinance existing U.S. and euro term loan B borrowings due 2026, to fund the acquisition of the Eastman Texas City site, including the 600kt Acetic Acid plant and all associated third-party activities, from Eastman Chemical Co. for $500 million, to partially refinance other debt due 2026, and to pay transaction fees and expenses.

Closing on the acquisition is expected this year, subject to regulatory approvals.

Ineos Quattro is a chemicals company.

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