Arrangers this afternoon finalized Ineos Finance’s secured cross-border loan package at $3.025 billion, and the transaction is likely to allocate tomorrow. The accompanying bond deal, which has been scaled back to $775 million, will price imminently.
The final structure includes a $2 billion, six-year U.S.-dollar term loan at L+525, with a 1.25% LIBOR floor and a 98.5 offer price. The six-year euro carve-out now totals €500 million and is priced at E+550, with a 1.25% floor, also at 98.5.
These levels represent the tight end of a range of L+525-550, with a 1.25% floor and a 98-98.5 OID on the dollar term loan, with the spread on the euro-denominated piece discussed 25 bps wider, sources said.
The accompanying three-year term loan, originally targeted at roughly $300 million, now totals $375 million and will be entirely denominated in U.S. dollars. It will price through the tight end of talk, at L+425, with a 1.25% floor at 99. The spread was initially discussed in a L+450-475 context, sources noted.
The entire covenant-lite-term loan package is subject to 102, 101 call premiums.
Barclays and J.P. Morgan are bookrunners and joint global coordinators, while Goldman Sachs and UBS are MLAs and bookrunners.
As noted earlier, Ineos canceled the euro tranche of its bond deal and set the size of the dollar-denominated tranche at $775 million, rather than the $2.2 billion cross-border package initially outlined. The size of the bond leg of the financing has been downsized in lieu of an increased loan, as reported, but the overall financing has been upsized by $100 million to fund general corporate purposes and the OID, according to sources.
J.P. Morgan (B&D) and Barclays are global coordinators on the bonds, with Goldman Sachs and UBS as underwriters, according to sources. – Staff reports