INEOS reaches deal with lenders on debt financing

16 July 2009 11:06  [Source: ICIS news]

LONDON (ICIS news)--INEOS has reached an agreement with its senior lenders on a package of amendments to the group’s financing arrangements, including a reset of the company’s financial covenants, the UK-based chemicals company said on Thursday.

It said proposals on €7.3bn ($10.3bn) of debt, which required approval by two-thirds of the 230 strong banking consortium, had been agreed by over 96% of its lenders.

“I am grateful for the strong support of our investors through this process. The covenant reset provides the necessary headroom and flexibility to progress our current strategy,” said Jim Ratcliffe, INEOS founder and chairman.

The company said its five-year business plan had been reviewed in great detail and "stress-tested" by banks and their advisors and reflected the continuing macro-economic environment.

The package agreed included a reset of the leverage, interest cover and debt service cover covenant levels, effective from September 2009, as well as an enhanced lender remuneration.

These new terms would come into effect on the 17 July, said INEOS.

INEOS, the UK’s largest private company and one of the world’s biggest petrochemicals producers, first requested waivers from certain bank covenants in November 2008 as the impact of the collapse in chemicals prices and demand became more widely apparent.

($1 = €0.71)

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By: Hilde Ovrebekk
+44 20 8652 3214

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