LONDON (Reuters) – UK chemicals firm Ineos Group has asked lenders for additional headroom on its debts, the company said on Thursday.
The privately held company, with debts of about 7.5 billion euros ($10.45 billion), has asked lenders to approve new terms on its loans, giving it greater headroom on its covenants.
The proposals would give the company additional space on its leverage, interest cover and debt service cover covenants, Ineos said in a statement.
To secure their approval, Ineos is offering lenders additional fees as well as a 2 percent increase in interest rates on the loans, Ineos Chief Financial Officer John Reece told Reuters.
Reece said the proposals have the support of a seven-strong “sounding group” of lenders, representing the company’s large banking syndicate. Lenders have until July 15 to approve the new terms.
If approved, the deal would be a long-term solution to the company’s debt issues, Reece added. ($1=.7177 euros) (Editing by Mike Nesbit)