S&P rates Gemini HDPE loan B+

Standard & Poor’s said it assigned a preliminary B+ senior secured rating and 3 recovery rating to Gemini HDPE LLC’s proposed first-lien senior secured $420 million term loan B due 2021.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

Gemini is a 50-50 joint venture between Ineos AG and Sasol Ltd., via wholly owned indirect subsidiaries, Ineos Gemini HDPE Holding Co. LLC and Sasol Chemicals North America LLC.

It intends to raise $524 million of capital to fund the construction of a 1 billion pound bimodal high-density polyethylene (HDPE) plant in La Porte, Texas.

The proposed funding sources include a $420 million term loan B and $104 million of equity. S&P said it assigned a B+ rating to the term loan B using the project finance methodology.

The rating on the term loan B is weak-linked to the rating on Ineos Group Holdings SA, which guarantees 50% of the project’s debt and all other payment obligations during the construction and operational phases, the agency said.

Sasol Financing (Pty.) Ltd., a subsidiary of Sasol Ltd., guarantees the remaining 50% of Gemini’s debt and counterparty payment obligations, S&P said.

© 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.