By Paul A. Harris
St. Louis, May 5 - After retooling tranche sizes, England's Ineos Finance plc priced approximately €700 million equivalent of five-year senior secured notes (B2/B/) in a dual-tranche deal on Wednesday, according to an informed source.
The specialty petrochemical company priced a downsized $570 million tranche of 9% notes at par, with the 9% yield printing at the tight end of the 9% to 9¼% price talk. The dollar-denominated tranche was decreased from $585 million.
Ineos also priced an upsized €300 million tranche of 9¼% notes, also at par, with the yield printing at the tight end of the 9¼% to 9½% price talk. The euro-denominated tranche was upsized from €250 million.
The resizing of the tranches reflected sentiment, on the part of European investors, that the euro-denominated tranche should be bigger than the €250 million which the company initially brought to the market, the source said.
Barclays Capital and JPMorgan were the joint physical bookrunners. Citigroup and Morgan Stanley were the joint bookrunners.
The notes rank pari passu with the company's first-lien bank debt.
Proceeds will be used to refinance the company's first-lien term loans.
Ineos is based in Lyndhurst, England.
| Issuer: | Ineos Finance plc
|
| Amount: | €700 million equivalent (approximate)
|
| Maturity: | May 15, 2015
|
| Securities: | Senior secured notes
|
| Joint physical bookrunners: | Barclays Capital, JPMorgan
|
| Joint bookrunners: | Citigroup, Morgan Stanley
|
| Call protection: | Three years
|
| Trade date: | May 5
|
| Settlement date: | May 12
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Dollar-denominated notes
|
| Amount: | $570 million, decreased from $585 million
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 671 bps
|
| Price talk: | 9% to 9¼%
|
|
|
| Euro-denominated notes
|
| Amount: | €300 million, upsized from €250 million
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 747 bps
|
| Price talk: | 9¼% to 9½%
|
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