New Issue: Ineos prices $1.65 billion equivalent notes due 2019 in two parts

By Paul A. Harris

Portland, Ore., Feb. 3 - Ineos Finance plc priced a massively upsized $1.65 billion equivalent of seven-year senior secured notes (Ba3/B/) in two tranches on Friday, according to a market source.

The deal included a €500 million tranche of floating-rate notes, which priced at par to yield three-month Euribor plus 600 basis points with a 1.25% Euribor floor.

The yield printed on top of price talk, which was revised downward from original spread talk of 600 bps to 625 bps.

The tranche was originally sized at €250 million minimum.

Joint bookrunner Barclays Capital Inc. will bill and deliver. J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC, Lloyds TSB, Morgan Stanley & Co. and UBS Securities were also joint bookrunners.

In addition Ineos priced $1 billion of fixed-rate notes at par to yield 8 3/8%.

The yield printed on top of price talk, which was downwardly revised from earlier talk of 8½% to 8¾%.

Joint bookrunner JPMorgan will bill and deliver for the fixed-rate tranche. Barclays Capital, Bank of America Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities, Goldman Sachs, HSBC, Lloyds TSB, Morgan Stanley and UBS Securities were also joint bookrunners.

The combined two-tranche deal was upsized from $850 million equivalent.

The Lyndhurst, England-based chemical company plans to use the proceeds to refinance debt.

Issuer:	Ineos Finance plc
Amount:	$1.65 billion equivalent, increased from $850 million equivalent
Maturity:	Feb. 15, 2019
Security description:	Senior secured notes
Change-of-control put:	101%
Trade date:	Feb. 3
Settlement date:	Feb. 10
Ratings:	Moody's: Ba3
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Marketing:	Roadshow
Floating-rate notes
Amount:	€500 million, originally sized at €250 million minimum
Bookrunners:	Barclays Capital (bill and deliver), J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC, Lloyds TSB, Morgan Stanley & Co., UBS Securities
Coupon:	Three-month Euribor plus 600 bps with a 1.25% Euribor floor
Price:	Par
Yield:	Three-month Euribor plus 600 bps with a 1.25% Euribor floor
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 15 2015, then callable at 102, 101, par on and after Feb. 15, 2017
Price talk:	Three-month Euribor plus 600 bps with a 1.25% Euribor floor (revised lower from 600 to 625 bps)
Fixed-rate notes
Amount:	$1 billion
Bookrunners:	JPMorgan (bill and deliver), Barclays Capital, Bank of America Merrill Lynch, Citigroup Global Markets, Deutsche Bank Securities, Goldman Sachs, HSBC, Lloyds TSB, Morgan Stanley, UBS Securities
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	715 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at 106.281, 104.188, 102.094, par on and after Feb. 15, 2018
Equity clawback:	35% at 108.375 until Feb. 15, 2015
Price talk:	8 3/8%, revised from 8½% to 8¾%

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