By Paul A. Harris
Portland, Ore., Jan. 21 – Ineos Quattro priced a downsized €1.7 billion equivalent of high-yield notes in three tranches on Thursday, according to a syndicate source.
The deal, which was downsized from approximately €2 billion equivalent, featured €800 million of five-year non-call two-year first-lien senior secured notes (Ba3/BB/BB+), which priced at par to yield 2½%. The yield printed at the tight end of the 2½% to 2¾% yield talk. Initial guidance was 2¾% to 3%.
The offering also featured $500 million of five-year non-call two-year first-lien senior secured notes (Ba3/BB/BB+) that priced at par to yield 3 3/8%. The yield printed at the tight end of yield talk in the 3½% area. Initial guidance was in the 3¾% area.
Late Wednesday, when books closed for the dollar-denominated notes, the $500 million tranche was heard to be playing to $4 billion of orders, a trader said.
The sole unsecured tranche was a downsized €500 million amount of long five-year non-call two-year unsecured notes (B2/B+/BB-), which priced at par to yield 3¾%, at the tight end of the 3¾% to 4% yield talk. Initial guidance was 4% to 4¼%. The unsecured portion of the deal decreased from €1 billion equivalent with the withdrawal of a dollar-denominated tranche of unsecured notes.
Citigroup Global Markets Inc. is lead left bookrunner for the dollar-denominated tranches.
Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leads on the euro-denominated tranches.
The secured tranches were priced via Ineos Quattro Finance 2 plc and the unsecured tranche via Ineos Quattro Finance 1 plc.
Proceeds will be used to repay the bridge loan taken out to finance the acquisition of BP’s aromatics and acetyls businesses, refinance the company’s term loan and pay the deferred considerations owed to BP for the acquisition.
Financing also consists of a bank loan that was upsized to €3.15 billion equivalent from a revised amount of €2.9 billion equivalent and an initial size of €2.6 billion equivalent.
| Issuer: | Ineos Quattro
|
| Amount: | €1.7 billion equivalent, decreased from €2 billion equivalent
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| Managers: | Citigroup Global Markets Inc., Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., ABN Amro Inc., BofA Securities Inc., Commerz Markets LLC, Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities Inc., ICBC Standard Bank plc, ING Financial Markets LLC, Intesa Sanpaolo, Lloyds Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, NatWest Markets Securities Inc. and Santander Investment Securities Inc.
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| Trade date: | Jan. 21
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| Settlement date: | Jan. 29
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| Distribution: | Rule 144A and Regulation S for life
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| Marketing: | Roadshow
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|
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| Dollar-denominated notes
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| Issuer: | Ineos Quattro Finance 2 plc
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| Issue: | Senior secured notes
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| Amount: | $500 million
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| Maturity: | Jan. 15, 2026
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| Left lead bookrunner: | Citigroup (bill and deliver)
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| Coupon: | 3 3/8%
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| Price: | Par
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| Yield: | 3 3/8%
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| Spread: | 293 bps
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| Call protection: | Three years
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| Ratings: | Moody's: Ba3
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| S&P: BB
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| Fitch: BB+
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| Price talk: | 3½% area
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|
|
| Euro-denominated secured notes
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| Issuer: | Ineos Quattro Finance 2 plc
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| Issue: | Senior secured notes
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| Amount: | €800 million
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| Maturity: | Jan. 15, 2026
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| Physical bookrunners: | Barclays (bill and deliver), HSBC and JPMorgan
|
| Coupon: | 2½%
|
| Price: | Par
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| Yield: | 2½%
|
| Spread: | 322 bps
|
| Call protection: | Three years
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| Ratings: | Moody's: Ba3
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| S&P: BB
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| Fitch: BB+
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| Price talk: | 2½% to 2¾%
|
|
|
| Unsecured notes
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| Issuer: | Ineos Quattro Finance 1 plc
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| Issue: | Unsecured notes
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| Amount: | €500 million
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| Maturity: | July 15, 2026
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| Physical bookrunners: | Barclays (bill and deliver), HSBC and JPMorgan
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| Coupon: | 3¾%
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| Price: | Par
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| Yield: | 3¾%
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| Spread: | 446 bps
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| Call protection: | Three years
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| Ratings: | Moody's: B2
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| S&P: B+
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| Fitch: BB-
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| Price talk: | 3¾% to 4%
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