15 January 2010 19:17 [Source: ICIS news]
LONDON (ICIS news)--INEOS will create the Kerling Group from its INEOS Norway polyvinyl chloride (PVC) assets and the INEOS ChlorVinyls business, INEOS Capital said on Friday.
The businesses will be re-financed and held under the new financing structure. The chlorvinyls and Norwegian polymer operations have been operated jointly since the acquisition of the Norsk Hydro polymers business in 2008.
INEOS’s Kerling plc, the renamed parent of INEOS Norway, is aiming to raise €785m ($1.1bn) by offering senior secured notes due in 2017 to refinance the debt accrued on its acquisition of the Norsk Hydro assets and INEOS ChlorVinyls, to refinance INEOS ChlorVinyls debt and create the Kerling Group.
“Upon the completion of the transaction, the combined Kerling group will become ?xml:namespace>
“The businesses that are to be combined are currently trading profitably and producing positive cash flows in bottom-of-cycle conditions,” it added.
“In 2008 and 2009, Kerling maintained relatively strong profitability, supported by the high degree of integration and existing long term ethylene supply contracts with INEOS Group Holdings and a jointly-owned cracker, good logistics and relatively low energy and fixed costs,” credit rating agency Moody’s said in a note on the proposed bond issue.
It expects limited growth in the European chlorvinyls market “along with modest profitability improvements from the current levels”.
($1 = €0.69)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections