Styrolution reveals talk on €1.05 billion equivalent term loan B

By Sara Rosenberg

New York, Oct. 6 – Styrolution launched its €1.05 billion equivalent five-year covenant-light term loan B to U.S. investors on Monday with price talk of Libor/Euribor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

Expected ratings are B2/B.

The loan will have U.S. and euro tranches, but the split is still to be determined.

A bank meeting for European investors will take place in London on Tuesday.

Styrolution Group GmbH and Styrolution US Holding LLC are the borrows on the loan.

Commitments are due on Oct. 21, the source added.

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 additional second-lien debt and cash on hand.

Styrolution is a Frankfurt-based styrenics supplier.

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