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Ineos launches $1.5 billion term loan with two-tranche structure
By Sara Rosenberg
New York, April 19 - Ineos Group Holdings SA launched on Thursday its $1.5 billion of covenant-light term loan B borrowings with a three-year tranche and a six-year tranche, according to a market source.
The three-year tranche is targeted at around $300 million, comprised of dollars and euros, and the six-year tranche is targeted at roughly $1.2 billion, also comprised of dollars and euros, the source said. Final sizes are still to be determined.
Guidance on the three-year loan is around 100 basis points inside of the six-year loan, so roughly in the low-6% area on an all-in basis. The spread and original issue discount are not yet out, but the floor is expected at 1.25%, the source said.
The six-year loan is guided in the low 7% context all-in, with the floor at 1.25% and the coupon and discount not yet determined.
Price talk on the debt is anticipated to firm up early next week.
Both tranches have soft call protection of 102 in year one and 101 in year two, the source added.
Commitments are due on April 26.
Barclays Capital Inc. and J.P. Morgan Securities LLC are joint global coordinators and joint bookrunners on the deal, and Goldman Sachs & Co. and UBS Securities LLC are mandated lead arrangers and joint bookrunners.
Proceeds will be used refinance senior secured debt.
At the end of March, the company's net debt was about €6.2 billion, and net debt leverage was around 3.8 times.
Cash balances at the end of the first quarter were €670 million and availability under undrawn working capital facilities was €350 million.
Ineos is a Lyndhurst, England-based chemical company.
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