Commentary & Deal Flow

+++Updates: term loan tranche sizes and UOP breakdown+++

INEOS Quattro Finance 2 Plc (STYRO) approx EUR892m (up from approx EUR800m) equivalent (EUR/US$) 144A/Reg S 5.5NC2 sr sec notes 2-part. Ba3/BB/BB+ (negative/negative/negative). Via BNP/Citi/GS (B&D, jt gloco, US$ sole physical books, EUR jt physical books)/HSBC (EUR jt physical books)/ING (EUR jt physical books)/JPM (jt gloco)/China Construction Bank/Commerz/CA/First Abu Dhabi Bank/ICBC/KBC/Mizuho jt books. No reg rights. List Lux. NY Law. Settles 11/14 (T+3). Approx EUR92m upsize to reduce US$ term loan.

- EUR525m due 03/15/29 (5.5y). NC2 (11/15/25) (MWC B+50bp), then at 104.25, 102.125, 100. Equity claw: 2y 40% at 108.50. Reg S ISIN: XS2719090636. Whisper: high 8s. Px talk: 8.50%-8.75%. Final terms: EUR525m 8.50% at 100. Priced: 8.50% at 100. +599bp vs 0.25% 02/02/29.

- US$400m (approx EUR375m) due 03/15/29 (5.5y). NC2 (11/15/25) (MWC T+50bp), then at 104.813, 102.406. Equity claw: 2y 40% at 109.625. 144A CUSIP: 272012750. Whisper high 9s. Px talk: 9.75% area. Final terms: US$400m 9.625% at 100. Priced: 9.625% at 100. +503bp vs UST 2.375% 03/31/29.

Roadshow 11/06-08 (investor call 3pm UKT/10am NYT 11/06). Books closed at 3:30pm UKT / 10:30am NYT today (originally closing at 2pm UKT / 9am NYT today). UOP: along with EUR1.885bn (down from EUR2bn) equivalent (EUR875m (up from EUR850m) and approx. US$1.1bn (down from US$1.25bn)) sr sec term loan B (lender call 10/30, commitments due 11/08), to partially refinance EUR1.521bn of its existing EUR1.5bn/US$2bn term loan B due 2026, to fund the acquisition of the Eastman Texas City site, including the 600kt Acetic Acid plant and all associated third party activities on the site, from Eastman for $490m cash ($415m due at closing and the remainder on the first and second anniversaries), and partially refinance EUR817m (up from EUR370m) notes due 2026 (tender offers for its US$500m 3.375% sr sec notes due 01/15/26 (any and all at $950 purchase price, GS/HSBC/ING dealer managers), and  a portion of its EUR800m 2.50% sr sec notes due 01/15/26 and EUR495m 3.75% sr notes due 07/15/26). Biz: global petrochemical manufacturer. HQ: London, UK. (Acquisition announced 09/28/2023).

Cash tender cash consideration: US$ sr sec notes $336.1m ($353.8m at 95%), EUR sr sec notes EUR393.9m (EUR417.9m at 94%), EUR sr unsec notes EUR115.7m (EUR127.8m at 90.5%). Indicative Expectation is for INEOS Quattro to accept all valid tender submissions submitted prior to respective deadlines.