Ineos lifts euro term B to €875 million, firms U.S. at $1.1 billion

By Sara Rosenberg

New York, Nov. 9 – Ineos Quattro upsized its euro term loan B due March 2029 to €875 million from a revised size of roughly €800 million and an initial size of €850 million, according to a market source.

In addition, the company firmed its U.S. term loan B due March 2029 size at $1.1 billion, from revised talk of roughly $1.1 billion and initial talk of roughly $1.25 billion, 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 an original issue discount of 97, and pricing on the euro term loan remained at Euribor plus 450 bps with a 0% floor and a discount of 97.

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

MFN is 50 bps until January 2026, unless the aggregate principal amount of 2026 term loans and 2026 secured bonds has been reduced to €500 million or less, in which case, MFN will expire so long as such date is 12 months post-closing.

Previously in syndication, the original issue discount on both term loans finalized at the wide end of the 97 to 98 talk, and the MFN was revised from 50 bps for 12 months.

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 for the euro term loan were scheduled to be due at 11:15 a.m. ET on Thursday, the source added. Books for the U.S. term loan closed at 9 a.m. ET on Thursday.

Proceeds will be used with $400 million of senior secured notes and €525 million of 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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