INEOS Quattro Finance 2 Plc, a UK-based finance company, has announced an offer to purchase all of its outstanding U.S.$146.18 million 3.375% Senior Secured Notes due 2026. The offer aims to proactively manage the company’s maturity profile while providing holders the opportunity to liquidate their investments.
In a statement released today, the Offeror detailed its intent to buy back the securities issued by the company and guaranteed by INEOS Quattro Holdings Limited and certain subsidiaries. The terms of the offer are outlined in an offer to purchase document dated September 23, 2024. Investors are urged to read the document for complete details and instructions on how to participate.
The offer includes a purchase price of U.S.$995 per U.S.$1,000 principal amount of the notes tendered and accepted. Holders will also receive accrued and unpaid interest on the securities purchased, calculated from the last interest payment date up to, but not including the settlement date. This presents a timely opportunity for investors looking to exit their positions in the notes.
The Offeror has engaged in discussions with certain shareholders, collectively holding around U.S.$6 million of the securities, who have indicated their intention to participate in the offer. This proactive engagement highlights the company’s commitment to maintaining strong relationships with its investors.
The primary purpose of the offer is to streamline the company’s expected maturity profile. Should fewer than all of the securities be tendered and accepted, the Offeror plans to redeem the remaining notes at par value on January 15, 2025, ensuring that holders who do not participate in the current offer have a clear exit strategy in the near future.
The offer is not conditioned on a minimum number of securities being tendered; however, it is subject to certain general conditions, including the completion of new debt financing with proceeds of at least €1.6 billion. This financing condition reflects the company’s broader strategy to enhance its financial position.
Holders of the securities have until October 2, 2024, at 5:00 p.m. (New York City time) to submit their tender instructions. This deadline is also the last opportunity for holders to withdraw their tenders if they change their minds about participating in the offer. Results of the offer are expected to be announced on October 3, 2024, followed by settlement dates for accepted tenders.
The INEOS Quattro Finance initiative underscores the company’s efforts to manage its debt effectively and adapt to market conditions. Securities purchased through this offer are expected to be cancelled immediately, while any remaining securities will continue to be outstanding post-settlement.
Announcements regarding the offer will be made through a widely disseminated press release, and further details will be available from the Tender & Information Agent and the dedicated offer website.
This strategic move by INEOS Quattro Finance is positioned to bolster its financial health and provide flexibility in its capital structure, paving the way for future growth opportunities.
