INEOS increases its bond offer from $850 million to approximately $1.65 billion on the back of strong demand.
INEOS to repay all of the Term Loan B as well as a portion of the Term Loan C and will have no further significant maturity of term debt until June 2014.
John Reece, CFO INEOS Capital says: “This is a significant vote of confidence in the ongoing performance of INEOS”.
INEOS Group Holdings S.A. (“INEOS”) announced today that its indirect, wholly-owned, finance subsidiary, INEOS Finance plc, had completed the pricing of its offering of U.S. dollar-denominated fixed rate and euro-denominated floating rate senior secured notes due 2019 (the “Notes”).
The Notes, in an aggregate principal amount of approximately $1.65 billion equivalent, priced at $1 billion at 8 ⅜% and €500 million at EURIBOR plus 600bps, with a EURIBOR floor of 125bps.
The increase in the aggregate principal amount of the offering from the $850 million equivalent, initially announced at launch of the offering, to approximately $1.65 billion equivalent, is a reflection of the very strong demand for the Notes, both in Europe and the US.
The net proceeds of the offering will be used to prepay all of the Term Loan B, as well as a portion of the Term Loan C, outstanding under a bank facilities agreement dated 12 May 2010, putting the INEOS Group in a stronger financial position as trading continues to improve. The next significant instalment of term debt under this facilities agreement does not become due until 30 June 2014.
John Reece, CFO INEOS Capital said today: “This is again a significant vote of confidence in INEOS. Although our aim was to raise $850m, in the end this was extended to approximately $1.65bn. The market is clearly encouraged by the continued performance of the INEOS Group and its ability to deliver its business plan. INEOS continues to perform very well during difficult economic conditions. It has delivered a strong performance in 2011 and is already seeing a positive start to 2012. In combination with our continued focus on cash management and liquidity we have significantly de-levered the Group.”
The Notes were assigned a Ba3 rating from Moody’s and a B rating by Standard & Poor’s.
Barclays Capital and J.P. Morgan acted as joint global coordinators and bookrunning managers for the issue and BofA Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs International, HSBC, Lloyds Securities, Morgan Stanley and UBS Investment Bank acted as bookrunning managers for the issue.
Ondra Partners advised INEOS in connection with the fund raising.
For further information, please contact:
Richard Longden Tel: +41 (0) 21 627 7063
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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”). The Notes will not be registered under the Securities Act. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the issuer making the offer and its management and financial statements. No public offering of the Notes will be made in the United States. This press release is being issued pursuant to and in accordance with Rule 135e 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 (the “Order”), (iii) high net worth entities of the type falling within Article 49(2) of the Order, and (iv) to the extent that doing so does not prejudice the lawful direction of the communication at the foregoing, other persons to whom it may lawfully be directed or 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 (together with any applicable implementing measures in any member state, the “Prospectus Directive”).
Forward Looking Statements
This press release may include forward looking statements. 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.