17 March 2010 12:23 [Source: ICIS news]
By Nigel Davis
LONDON (ICIS news)--INEOS plans a bond issue of up to €1bn ($1.37bn) to refinance a significant proportion of its senior debt and further improve liquidity, the chemicals group said on Wednesday.
Lenders had suggested it consider the issuance of new senior notes and term loans, INEOS said.
“INEOS’s trading in 2009 was strong and we have improved its EBITDA performance in most of our businesses as markets have improved,” INEOS's CEO, Tom Crotty, said in a statement. “We have moved into 2010 with trading continuing to improve and we are now in a stronger position to consider our longer-term funding structure.”
Full-year earnings before interest, tax, depreciation and amortisation (EBITDA) for 2009 were €1.22bn compared to €594m in 2008, and the company was trading ahead of its business plan, it said. Financial performance was expected to improve through 2010, it added.
The two disposals were expected to produce a total increase in liquidity of about €300m and a total reduction of net debt (including pension fund liabilities) of €600m, it added. The company has to make debt repayments of €250m this year and €250 in 2011.
Media reports earlier in the week had suggested that the company was considering asset disposals as part of its plans to strengthen its balance sheet and was in talks with Chinese and Middle East investors.
INEOS declined to comment on the reports, but said it was continuing discussions with a range of strategic investors and had no pressing need to do any deals as the business was performing well.
($1 = €0.73)
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