Funding: Ineos Styrolution to sell Thai plant to India’s Styrenix; Trinseo and lenders agree to extend debt maturities

Funding: Ineos Styrolution to sell Thai plant to India’s Styrenix; Trinseo and lenders agree to extend debt maturities

Styrenics supplier Ineos Styrolution has announced that it has entered into a definitive agreement to sell its acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN) production site in Map Ta Phut, Thailand, to India’s Styrenix Performance Materials Limited. Terms were not disclosed.

Under the terms of the agreement, Styrenix will acquire Ineos Styrolution’s 100% equity interest in Ineos Styrolution (Thailand) Co Ltd. The transaction is expected to close in early 2025.

In other news, Trinseo PLC has announced it secured a transaction support agreement with key holders of its senior notes and term loans.

As per the transaction support agreement, these creditors will support transactions aimed at refinancing near-term maturities, enhancing operating liquidity, extending the nearest debt maturity to 2028, and capturing a discount through an exchange of the company's 2029 senior notes.

Trinseo plans to redeem and refinance its US$115 million in 2025 Senior Notes by issuing US$115 million in 2028 Refinance Term Loans.

These loans will carry terms similar to the credit facility established in September 2023.

At least US$330 million of 2029 Senior Notes will be exchanged for new 2029 Second Lien Senior Secured Notes at a discount to their face value. This exchange will allow Trinseo to capture at least US$49 million in value from Supporting Creditors.

The company will establish a new US$300 million revolving credit facility with a reset springing covenant and a maturity date of February 2028.

This facility will be immediately available and will replace the existing facility set to mature in May 2026.

Frank Bozich, Trinseo’s President/CEO, said, “This transaction significantly strengthens our ability to implement key strategic initiatives that support our ongoing transformation as a leading provider of specialty materials and sustainable solutions.”

”The added financial flexibility gives us more runway to thoughtfully focus on optimizing our portfolio, invest in our leading circular technologies, and further solidify our financial position.”

As of September 30, Trinseo had cash of US$167 million, including US$2 million in restricted cash, and had approximately US$177 million in additional liquidity available through two committed financing facilities.

(PRA)

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