Rlpc pricing emerges on styrolution loan refinancing

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Oct 7 Pricing has emerged on a 1.05 billion euro-equivalent (1.33 billion US dollar) first lien five-year term loan for German plastics maker Styrolution that refinances existing debt and backs an acquisition, banking sources said on Tuesday. Barclays and JP Morgan are leading the dual-denominated covenant-lite deal which is guided to pay between 450 basis points (bp) to 475bp at 99 original issue discount (OID). There is also a 1 percent Libor/Euribor floor, the banking sources said. Commitments from lenders are due October 21.

The loan was first launched in July at 1.6 billion euros, but was withdrawn in August due to changes in market conditions which included a summer slowdown in Europe's leveraged loan market.

Citigroup and Credit Suisse led that deal which was originally guided to pay 350bp-375bp on the euro tranche and 350bp on the dollar tranche, both at 99.5 OID with a 1 percent floor. The current loan financing also includes around 350-400 million euros of second lien loans. A 100 million euro dividend payment to Ineos that was planned in the original deal has been removed and around 100 million euros of balance sheet cash will make up the rest of the refinancing.

The loan will be used to refinance existing senior bond debt and finance Ineos' $1.5 billion purchase of German chemicals maker BASF's 50 percent stake in joint venture Styrolution that Ineos does not already own. Styrolution is a global styrenics supplier and was set up as a joint venture between Ineos and BASF in 2011. Ineos agreed to buy the other half of Styrolution that it did not already own to gain full ownership of company on June 30. (1 US dollar = 0.7921 euro)