S&P rates Gemini HDPE loan B+

Standard & Poor’s said it assigned a B+ senior secured rating to Gemini HDPE LLC’s $420 million first-lien senior secured term loan B.

The 2 recovery rating indicates 70% to 90% 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.

Gemini, a special-purpose bankruptcy-remote entity intends to raise $524 million of capital to fund the construction of a 1 billion pound bimodal high-density polyethylene (HDPE) plant in Texas, the agency said.

The funding sources include a $420 million term loan B and $104 million of equity, S&P said.

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

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