INEOS announces refinancing of Term Loans and planned refinancing of all of its outstanding Dollar-denominated 5.875% Senior Notes due 2019 and Euro-denominated 5.750% Senior Notes due 2019.
LYNDHURST – January 30, 2017
INEOS Group Holdings S.A. (“INEOS”) today announced that its indirect wholly owned finance subsidiaries, INEOS Finance plc and INEOS US Finance LLC, intend to take the following actions under the existing Senior Secured Term Loan Agreement (the “Refinancing”):
- prepay all the Term Loans due 2018 in an amount of approximately $1,315,000,000 with cash on hand;
- convert all the Term Loans due 2020 and all the Term Loans due 2022 in an aggregate amount of approximately €1,935,000,000 and $1,490,000,000 to new tranches of Term Loans due 2022 in approximately the same amount but having lower interest rate margins than the existing tranches; and
- borrow additional term loans in an amount of approximately €1,150,000,000 (in a combination of euro and U.S. dollars) and use the net proceeds from the borrowing to refinance all of INEOS’s outstanding 5.875% Senior Notes due 2019 and 5.750% Senior Notes due 2019.
After giving effect to the Refinancing, the aggregate amount of debt under INEOS’s secured credit facilities will remain approximately the same as prior to the Refinancing, but with lower pricing and longer average life, while the total amount of INEOS’s unsecured debt will be significantly reduced. There can be no assurance that the Refinancing will be completed.
For further information, please contact:
Direct tel.: +41 (0) 21 627 7063
Mobile: +41 (0) 799 626 123
Direct tel.: +41 (0)21627 7020
Mobile: +41 (0) 795 570 169
This press release is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America or in any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). No indebtedness incurred in connection with the Refinancing will be registered under the Securities Act.
This communication is directed only at (i) persons who are outside the United Kingdom, (ii) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”), (iii) are persons falling within Article 49(2)(a) to (d) “high net worth companies, unincorporated associations, etc.” of the Order, and (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any notes may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). Any investment activity to which this communication relates will only be available to, and will only be engaged in with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
This announcement is not a public offering in the Grand Duchy of Luxembourg or an offer of securities to the public in any European Economic Area member state that has implemented Directive 2003/71/EC, and any amendments thereto (together with any applicable implementing measures in any member state, the “Prospectus Directive”).
Forward Looking Statements
This press release may include “forward looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements can be identified by the use of forward looking terminology, including the terms ‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘will’’ or ‘‘should’’ or, in each case, their negative, or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding INEOS’s intentions, beliefs or current expectations concerning, among other things, INEOS’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward looking statements are not guarantees of future performance and that INEOS’s actual results of operations, financial condition and liquidity, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward looking statements contained in this press release. In addition, even if INEOS’s results of operations, financial condition and liquidity, and the development of the industry in which INEOS operates are consistent with the forward looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you should not rely on forward looking statements as a prediction of actual results.