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HOUSTON (ICIS)--Trinseo plans to use the proceeds of its initial public offering (IPO) to pay down debt, the company said on Friday.
As of 31 December, there was $1.33bn in principal that was still outstanding on the company's 8.750% senior secured notes due in 2019, Trinseo said in its IPO filing.
The company would raise up to $200m through the IPO.
Trinseo proposed to be listed under the symbol TSE. It did not say which exchange it would be listed under or how many shares it planned to issue.
Trinseo was once part of Dow and was called Styron before it was sold to Bain Capital for $1.63bn in 2010.
Trinseo reported a Q4 net income $10.6m thanks to decreased expenses compared with the year-prior period.
However, the company recorded a net loss of $22.2m for full-year 2013 due to higher expenses compared with the year before and a $20.7m loss on extinguishment of long-term debt.
For Q4 2013, Trinseo had net sales of $1.25bn, down 5.3% from $1.32bn in Q4 2012.
But overall the quarter was much better than the year-prior period, when the company posted a $507,000 net loss.
Full-year 2013 sales revenues reached $5.31bn, down 2.6% from $5.45bn in 2012. Stryon attributed the loss in sales volume to increased polystyrene (PS) prices due to higher styrene prices, as well as lower demand in European and Asian paper markets for the company’s latex products.
In 2013, 60% of the company's sales were in Europe. Asia Pacific followed at 23%. The US was 13%.
Trinseo's sales by end market were more or less evenly divided. Paper and board made up 18%, followed by tyres at 12%, automotive at 12%, appliances at 11% and building and construction at 11%.
Other was the largest category at 21%.
Trinseo has two business units. Emulsion polymers include the company's latex segment and synthetic rubber segment. The plastics business includes the company's styrenics segment and engineered polymers segment.
The latex segment includes styrene butadiene latex (SB latex); styrene acrylate latex; vinylidene chloride latex and performance latex.
Synthetic rubber includes solution styrene butadiene rubber (SBR) and polybutadiene based rubber products.
The company has 35 manufacturing plants, which include 83 production units.
Trinseo said it has a technological advantage in enhanced SSBR. This material is used in the latest performance tyres. Trinseo expects the global market for SSBR to grow 9%/year through 2020.
By 2017, enhanced SSBR should make up about 40% of the total SSBR market, Trinseo said.
Trinseo expects to continue investing in research and development (R&D) for improving its SSBR as well as its polybutadiene rubber technologies.
Regarding SSBR, the company has been working with tyre makers during the last five years to develop new grades of the material, Trinseo said.
These grades are intended to improve tyre fuel economy, grip and abrasion.
The company is also developing new advanced plastics with industrial partners, particularly those in the automotive, medical-device and consumer-electronics industries.
Over the years, there has been much capacity removed in the markets served by Trinseo.
From 2005-2011, more than 400,000 tonnes of SB latex capacity was eliminated in North America and Europe, Trinseo said. This represents a reduction of 20%.
For PS, more than 1m tonnes of capacity has been eliminated in the US and western Europe from 2006-2011.
Trinseo had earlier filed for an IPO in 2011.
Additional reporting by Jeremy Pafford