Ineos said to seek lower rate on $3.7 Billion of loans due 2018

Ineos

Ineos Group Holdings SA, the world’s largest maker of phenol and nitrile chemicals, is seeking to lower the rate on about $3.7 billion of loans that expire in 2018, according to two people with knowledge of the transaction.

Bank of America Corp. and Barclays Plc are arranging the financing for the Rolle, Switzerland-based company and will host a lender call tomorrow at 9 a.m. in New York, said the people, who asked not to be identified without authorization to speak publicly.

The debt includes a $2.61 billion piece that pays interest at 3 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark and an 841 million-euro ($1.14 billion) portion that pays interest at 3.25 percentage points more than Euribor, with a 1 percent floor on the lending benchmark, according to data compiled by Bloomberg. The credit pact, obtained in May 2013, includes a $370 million term loan that expires in 2015, Bloomberg data show.

The loans are covenant-light, meaning they don’t contain financial-maintenance requirements.

Source: Bloomberg
Published: 02 Feb 2014