Gemini HDPE talks $600 million term loan B at Libor plus 300-325 bps

By Sara Rosenberg

New York, Dec. 2 – Gemini HDPE LLC launched on Wednesday its $600 million seven-year senior secured term loan B (Ba3) with price talk of Libor plus 300 basis points to 325 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization such that about 30% of the loan has amortized over seven years in accordance with an accelerated mortgage-style amortization schedule.

Security is a first priority lien on substantially all assets with customary exceptions, all intercompany debt owed to the borrower and 100% of the equity interests in the borrower.

Barclays and Morgan Stanley Senior Funding Inc. are the bookrunners on the deal. Barclays is the administrative agent.

Commitments are due at 5 p.m. ET on Dec. 10.

Proceeds will be used to amend and extend an existing term loan B and fund the $404 million acquisition by Ineos Olefins and Polymers USA of Sasol’s 50% interest in the company and, thereby, become the 100% owner of the asset.

The transaction is targeted to close on Dec. 31.

Gemini HDPE is a Bimodal High-Density Polyethylene plant situated in La Porte, Tex.

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