Last month INEOS announced that it had achieved ‘a record breaking profit of 4.3 billion euros of EBITDA last year’. It’s a figure only rivalled by the very biggest names in the industry. The group is also repaying 1.2 billion of euros from its cash resources.
INEOS Group has also just closed its latest debt financing and repricing. This included raising 1.4 billion euros of new loans and repricing 3 billion euros of existing debt. The new borrowings will save the group over 100 million euros a year and were oversubscribed by 50%, showing the credit market’s strong confidence in the company.
“These figures confirm that INEOS is doing better than ever,” said Jim Ratcliffe, INEOS founder and chairman.
“All the businesses are performing well and our successful refinancing shows that the market is clearly recognising this fact.”
INEOS is composed of 27 businesses, organised into six main groups. INEOS Group is the largest of these clusters with Styrolution, INOVYN, Enterprises, O&P (UK) and O&P (South) making up the rest. Even the smallest of these businesses has a billion-euro turnover and is a substantial undertaking in its own right
“We’ve spent the last three months working on a comprehensive cross border finance package including euro and dollar borrowings,” said finance director John Reece.
“I am pleased to say that we’ve achieved better terms across the board, saving the company 100 million euros annually and pushing out debt maturities until 2022 at the earliest”. This follows equally successful refinancings of our Inovyn and Styrolution businesses in 2016.”
The new borrowing also includes a “step down” facility whereby the repayment costs will be reduced if the company meets certain financial targets.
“INEOS is a unique business, “ added Jim Ratcliffe.
“We only set it up eighteen years ago, and it has never floated. It’s a tribute to everyone involved – owners, management and staff – that it is now doing so well.”