Sabic to issue a two-part bond to fund acquisition of GE Plastics

25-Jul-07

Sabic Innovative Plastics Holding BV is to issue a two-part bond to fund Saudi Basic Industries Corp.'s (Sabic) acquisition of GE Plastics. The senior unsecured bond offer will be denominated in euros and dollars and is to be priced following a roadshow starting Wednesday and ending next Monday. The euro tranche will total EUR590 million and the dollar tranche US$1.95 billion. Both will have a maturity of eight years and be non-callable for four years. The bonds will also have change-of-control put option at a price of 101%. The financing is being led by Citigroup, ABN AMRO, HSBC and JPMorgan. SABIC aims to raise US$9 billion worth of debt by the end Q3 to finance its acquisition of the U.S. General Electric Co.'s GE plastics unit.