MOSCOW (MRC) -- Styrolution, the global leader in the styrenics industry, has concluded the placement of a new First Lien Term Loan B of approx. EUR1.05 billion equivalent with institutional investors, reported the company on its site.
The borrowings consist of equally sized Euro and US Dollar tranches, each with a maturity of five years and priced at EURIBOR/LIBOR +550 basis points, respectively. Styrolution Group GmbH and Styrolution US Holding LLC are the borrowers. Standard & Poor's and Moody's have rated the facilities B and B2, respectively.
The loan financing is complemented by a Second Lien PIK Toggle Loan from Ineos Holdings Limited to Styrolution Holding GmbH of EUR200 million with a coupon of 9.5% cash (or, under certain specified conditions, 10.25% PIK).
The net proceeds will be used, along with the Second Lien PIK Toggle Loan proceeds and cash at hand, to finance:
the Ineos purchase price payment for BASF's 50% stake in Styrolution and the redemption of the existing 7.625% Senior Secured Notes of EUR480 million due 2016 on November 10, 2014, as well as related fees and expenses.
The acquisition is expected to close in the fourth quarter of 2014 pending regulatory approval.
As MRC wrote previously, in order to further strengthen its polystyrene (PS) business in Europe, the Middle East and Africa (EMEA), Styrolution intends to close its 80,000 tonne PS production site located in Trelleborg, Sweden.
The Styrolution Group GmbH is a global provider of styrenics , headquartered in Frankfurt am Main. The company is a joint venture between BASF (50%) and INEOS (50%), were merged into the main styrene operations of the two partners. Its main focus is on the production of monomer, polystyrene, styrenic specialties, and ABS. The company offers styrene plastics for a variety of everyday products from different industries, such as automotive, electronics, construction, household, leisure, packaging, medicine and health.
MRC