| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Styrolution Group GmbH > News item |
Styrolution widens spread, OID on €1.05 billion equivalent term loan B
By Sara Rosenberg
New York, Oct. 22 – Styrolution (Styrolution Group GmbH and Styrolution US Holding LLC) increased pricing on its €1.05 billion equivalent five-year covenant-light term loan B (B2/B) to Libor/Euribor plus 550 basis points from talk of Libor/Euribor plus 450 bps to 475 bps and revised the original issue discount to 98 from 99, according to a market source.
The term loan still has a 1% floor and 101 soft call protection for one year.
The loan will have U.S. and euro tranches, but the split is not yet available.
A lender call will be held at 10 a.m. ET on Thursday to discuss the revised structure and terms of the debt financing and provide a trading update.
Recommitments for the term loan are due at 1 p.m. ET on Oct. 29.
Allocations are expected on Oct. 30.
Barclays and J.P. Morgan Securities LLC are the joint global coordinators, with Barclays the left lead on the U.S. piece and JPMorgan the left lead on the euro piece.
Proceeds will be used to help fund Ineos’ acquisition of BASF SE’s 50% share in Styrolution so that it becomes a wholly owned standalone company within Ineos, and to redeem Styrolution’s existing 7 5/8% senior secured notes due 2016.
Other funds for the transaction will come from a €200 million second-lien PIK toggle loan that is fully subscribed by Ineos Group Holdings.
The second-lien loan is priced at 9½% cash/10¼% PIK and has a mandatory PIK feature if net total leverage is more than 3.25 times, the source continued.
Initially, the company was planning on getting €400 million of junior debt, so the plan is to make up the remaining €200 million acquisition consideration with equity contributed by Ineos AG, the source added.
Styrolution is a Frankfurt, Germany-based styrenics supplier.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.