Oct 19 (Reuters) - Swiss chemicals group Ineos has launched a €3.58bn-equivalent leveraged loan to refinance existing debt and shave 50bp off of its term loan margins, banking sources said on Thursday.
Proceeds of the new €3.58bn-equivalent term loan, along with €500m of other new senior secured debt and €250m of cash from subsidiary Styrolution, the German plastics maker, will refinance all of Ineos’s existing €2.6bn term loan and US$2.36bn term loan.
The €3.583bn-equivalent term loan B will be split between euros and dollars.
The euro term loan is guided at 200bp over Euribor, with a 0.75% floor, while the dollar term loan is guided at 225bp over Libor, with a 0% floor.
Both are offered at 99.75 to par OID.
Barclays, Citi and JP Morgan are global coordinators, alongside joint bookrunners BMO, Credit Suisse, Deutsche Bank, ING and Lloyds.
A call is set to take place with lenders on Friday, with commitments due October 24.
Ineos’s existing term loans were last repriced and refinanced in February and both include 2022 and 2024 tranches.
The euro term loan currently pays 250bp over Euribor, with a 0.75% floor, while the dollar term loan pays 275bp over Libor, with a 0% floor.
The deal’s announcement coincides with Ineos’s release of its third quarter results on Thursday.
It had Ebitda for the twelve months to September of €2.56bn. Ineos estimated that Hurricane Harvey reduced its Ebitda for the third quarter by €50m, due to the temporary closure of some of its facilities in Texas during the storm.
It had net debt as of the end of September of €5bn, a cash balance of €1.45bn and net debt leverage of 2 times Ebitda.
Ba3/BB-rated Ineos is a global manufacturer of petrochemicals, specialty chemicals and oil products.
British billionaire Jim Ratcliffe founded Ineos in 1998 with the acquisition of BP’s chemicals facility in Antwerp. It subsequently acquired further chemical businesses from BP, ICI and BASF. (Editing by Claire Ruckin)