Following the announcement on 29^th June concerning the acquisition of BP’s global Aromatics and Acetyls business, INEOS Styrolution has entered into a c. $4.5 billion multicurrency credit facility with a syndicate of banks to fund the initial $4 billion purchase payment.

The facilities consist of a c. $3.5 billion equivalent two-year maturity bridge tranche, alongside a Term Loan A and Revolving Credit Facility.  The bridge tranche is expected to be refinanced with a combination of debt sources in the coming months, to form a capital structure in line with other INEOS businesses.

The facilities attracted strong support from INEOS’ banking relationships as well as a number of new lenders, with 23 banks offering over $9 billion of commitments in support of the acquisition.

As previously mentioned, INOVYN will be transferred into the newly formed group at the close of this transaction.  INEOS Styrolution is targeting a BB/Ba rating profile and proforma net leverage is expected to be less than 3.5x for 2020.  The financial policy for the enlarged business will remain the same, and the initial focus will be on improving the assets, cash generation, deleveraging and debt pay down.