Ineos Group Limited (“IGL”) announced to bondholders its 2006 full year results on 30 April 2006.

Following this announcement IGL now intends to seek the consent of its lenders to a number of amendments to the Senior Facilities Agreement (‘SFA’). 

Introduction

Ineos Group Limited (“IGL”) announced to bondholders its 2006 full year results on 30 April 2006. Following this announcement IGL now intends to seek the consent of its lenders to a number of amendments to the Senior Facilities Agreement (‘SFA’).

Amendment of the IGL Senior Facilities Agreement

IGL will seek certain amendments to the facilities which will require unanimous consent from the syndicate.

These include the consent to incur up to €300m (or the $ equivalent) of additional Term Loans, the proceeds of which would be available for the purchase of IGH 7⅞% and 8½% Senior Notes.

Consent will also be requested to consolidate and reprice the senior facilities. It is proposed that:

• The margin on the Term A Facility and the Revolving Facility be reduced from 225 basis points to 175 basis points (reducing further on a leverage pricing grid);
  
  
• The Euro Term B and Term C Facilities be consolidated into a new Term B1 Facility with a margin of 225 basis points, reducing to 200 basis points in the event that total leverage is less than 3.5:1. It will also benefit from a one-year 101 soft call premium;
  
  
• The US Dollar Term B and Term C Facilities be consolidated into a new Term B2 Facility with a margin of 225 basis points reducing to 200 basis points in the event that total leverage is less than 3.5:1. It will also benefit from a one-year 101 soft call premium; and
  
  
• The margin on the Term D Facility be reduced from 375 basis points to 350 basis points.

As a result of this repricing, Ineos will benefit from a significant reduction in interest costs, saving an estimated €23 million per annum.

Barclays Bank PLC as Agent for the IGL Senior Facilities is managing the consent process.