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In addition to the existing terms loan, an additional €350 million and $640 million has been raised.
Proceeds will repay existing 2015 notes and for general corporate purposes.
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INEOS Group Holdings S.A. (“INEOS”) announced on May 2, 2013 that its indirect, wholly-owned, finance subsidiary, INEOS Finance, has reduced the interest rates of its term loans.
The refinancing comprises a $371 million, two-year term loan, a $1.977 billion, five-year term loan, a $640 million five-year add-on term loan, a €494 million, five-year term loan, and a €350 million, five-year add-on term loan.
Proceeds will reduce the cost of borrowing on the company's existing senior secured term loans. In addition, proceeds from the €350 million and $640 million term loans will be used to repay the company's existing 2015 notes, to pay transaction fees and expenses and for general corporate purposes.
The company reduced the cost of its existing $371 million, two-year facility to LIBOR+2.00% (previously 4.25%).
The existing $1.977 billion, five-year facility, along with the $640 million add-on, priced at LIBOR+3.00% (previously, for the existing facility, 5.25%), with a 1 percent LIBOR floor (previously, for the existing facility, 1.25%). This also includes a step-down to LIBOR+2.75% when the company’s net leverage hits 3.75 times.
The existing €494 million, five-year facility, and €350 million add-on priced at EURIBOR+3.25% (previously, for the existing facility, 5.50%), with a 1 percent floor (previously, for the existing facility, 1.25%), with a step-down to EURIBOR+3.00% when net leverage drops to 3.75 times.
The refinancing (along with the partial refinancing of the company's debt due 2016) will save approximately €110 million in annual debt service costs.
The re-pricing is expected to be effective on or about May 8, 2013 and the additional term loans are expected to be funded on or about May 14, 2013.
John Reece, CFO INEOS Capital says: “This transaction has further improved the maturity profile of the Group’s debt, and significantly reduced the annual interest cost, making more cash available to develop the business”.
ENDS
Contact
For further information, please contact:
Richard Longden
Tel: +41 (0) 21 627 7063
Cautionary Statement
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 Repricing and 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.