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Half-yearly Report

FRANKFURT, Germany--(BUSINESS WIRE)--

Styrolution Group GmbH

Unaudited Interim Financial Statements – the three and six months ended 30 June 2014

Forward Looking Statements

The following report includes “forward-looking statements”, based on our current expectations and projections about future events, including:

  • the cyclical nature of our businesses and their sensitivity to changes in supply and demand;
  • raw material availability and costs, as well as supply arrangements, including arrangements with principal feedstock suppliers;
  • the highly competitive nature of our principal industries;
  • current or future environmental requirements, including those related to greenhouse gas and other air emissions, and the related costs of maintaining compliance and addressing liabilities;
  • currency fluctuations and economic downturns in the countries in which we operate;
  • our ability to implement our business and cost reduction strategies;
  • our ability to successfully integrate our businesses and realize anticipated synergies and cost savings; and
  • our substantial indebtedness following the consummation of the Joint Venture Transaction may affect our ability to service our outstanding indebtedness, which would likely impact the way we operate our business.

All statements other than statements of historical facts included in this report, without limitation, statements regarding our future financial position, risks and uncertainties related to our Company and the notes, strategy, capital expenditures, projected costs and our plans and objectives for future operations, may be deemed to be forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Words such as “believe,” “expect,” “anticipate”, “may”, “intend”, “will”, “should”, “estimate” and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. In addition, from time to time we or our representatives, acting in respect of information provided by us, have made or may make forward-looking statements orally or in writing and these forward-looking statements may be included in but are not limited to press releases (including on our website), reports to our security holders and other communications. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Styrolution Group GmbH – Unaudited Interim Financial Statements

Consolidated Statement of Income for the three and six months ended 30 June 2014 and 2013

In millions of EUR   1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013   1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013
 
Revenue 1,413.8 1,485.9 2,825.6 3,006.0
Cost of sales (1,259.0) (1,339.1) (2,524.0) (2,721.6)
Gross profit 154.8 146.8 301.6 284.4
 
Selling expenses (66.9) (67.4) (133.2) (133.8)
General and administrative expenses (23.0) (24.9) (46.6) (48.2)
Research and development expenses (2.8) (3.3) (6.1) (6.6)
Other operating expenses (net) (9.0) (6.5) (19.1) (11.0)
Result from operating activities 53.1 44.7 96.6 84.8
 
Interest income 0.6 1.0 1.1 1.9
Interest expense (12.1) (13.2) (24.9) (25.7)
Other finance gain (loss) (net) 2.4 (11.5) 3.3 0.9
Net finance costs (9.1) (23.7) (20.5) (22.9)
         
Income before tax 44.0 21.0 76.1 61.9
Income tax benefit (expense) (10.0) 0.2 (12.8) (13.9)
Net income 34.0 21.2 63.3 48.0
Attributable to:
Non-controlling interests 0.2 0.2 0.4 0.5
Owners of the company 33.8 21.0 62.9 47.5

Styrolution Group GmbH – Unaudited Interim Financial Statements

Consolidated Statement of Comprehensive Income for the three and six months ended 30 June 2014 and 2013

In millions of EUR   1 Apr –

30 Jun 2014

  1 Apr –

30 Jun 2013

  1 Jan –

30 Jun 2014

  1 Jan –

30 Jun 2013

 
Net income 34.0 21.2 63.3 48.0
Other comprehensive income (loss):
Foreign currency translation reserve 15.5 (30.9) 21.2 (10.7)
Total other comprehensive income (loss) 15.5 (30.9) 21.2 (10.7)
Total comprehensive income (loss) 49.5 (9.7) 84.5 37.3
Attributable to:

Non-controlling interests

-

(1.0)

0.6

(0.4)

Owners of the company 49.5 (8.7) 83.9 37.7

Styrolution Group GmbH – Unaudited Interim Financial Statements

Consolidated Statement of Financial Position

In millions of EUR   30 June 2014   31 December 2013
 
Assets
Property, plant and equipment 761.3 790.0
Intangible assets and goodwill 1,160.9 1,195.7
Deferred tax assets 27.3 22.3
Other receivables and miscellaneous non-current assets 17.2 17.0
Non-current assets 1,966.7 2,025.0
Inventories 510.9 499.6
Accounts receivable, trade 663.2 651.9
Other receivables and miscellaneous current assets 166.5 147.2
Cash and cash equivalents 335.6 288.1
Current assets 1,676.2 1,586.8
Total assets 3,642.9 3,611.8
Equity
Share capital 10.0 10.0
Contributed Surplus 1,641.4 1,641.4
Other reserves (18.5) (39.5)
Retained earnings 147.2 84.3
Equity attributable to owners of the Company 1,780.1 1,696.2
Non-controlling interest 13.2 12.6
Total equity 1,793.3 1,708.8
Liabilities
Financial indebtedness 482.7 481.0
Employee benefits 23.4 35.5
Deferred tax liabilities 321.5 334.1
Other liabilities and other long term provisions 38.2 51.0
Non-current liabilities 865.8 901.6
Accounts payable, trade 448.0 506.7
Financial indebtedness 284.9 268.7
Current tax liabilities 75.0 59.2
Other liabilities and short term provisions 175.9 166.8
Current liabilities 983.8 1,001.4
Total liabilities 1,849.6 1,903.0
Total equity and liabilities 3,642.9 3,611.8

Styrolution Group GmbH – Unaudited Interim Financial Statements

Consolidated Statement of Changes in Equity

 

 

In millions of EUR

  Share Capital  

Contributed Surplus

  Retained Earnings / (Accumulated deficit)   Other Reserves   Equity attributable to owners of the company   Non-controlling interest   Total
Equity
31 December 2013 10.0 1,641.4 84.3 (39.5) 1,696.2 12.6 1,708.8
 
Net income 62.9 62.9 0.4 63.3
Other Comprehensive income       21.0 21.0 0.2 21.2
Total comprehensive income     62.9 21.0 83.9 0.6 84.5
30 June 2014 10.0 1,641.4 147.2 (18.5) 1,780.1 13.2 1,793.3

 

             
31 December 2012 10.0 1,641.4 (38.0) 17.3 1,630.7 6.8 1,637.5
 
Net income 47.5 47.5 0.5 48.0
Other Comprehensive loss       (9.8) (9.8) (0.9) (10.7)
Total comprehensive income     47.5 (9.8) 37.7 (0.4) 37.3
India share sale       6.1 6.1 6.6 12.7
30 June 2013 10.0 1,641.4 9.5 13.6 1,674.5 13.0 1,687.5

Styrolution Group GmbH – Unaudited Interim Financial Statements

Consolidated Statement of Cash Flows

In millions of EUR   1 January –   1 January –
30 June 2014 30 June 2013
Cash flows from operating activities
Income before tax 76.1 61.9
Adjustment for:
Depreciation and impairment of property, plant and equipment 61.7 49.0
Amortization and impairment of intangible assets 45.9 51.5
Change in Other receivables 10.2 25.0
Change in pension provisions, other liabilities and charges (16.0) (31.8)
Net finance cost 20.5 22.9
Current income tax paid (31.1) (30.2)
Working capital adjustments:
- Inventories (4.7) 29.0
- Trade receivables (1.9) (53.9)
- Trade payables (53.4) 35.5
Cash generated from operating activities 107.3 158.9
Interest paid (21.6) (22.2)
Net cash flows from operating activities 85.7 136.7
 
Cash flows from investing activities
Investments in property, plant and equipment and intangible fixed assets (49.5) (39.5)
Net cash flows used in investing activities (49.5) (39.5)
 
Cash flows from financing activities
Share sale India - 12.7
Repayments of asset securitization, net - (53.6)
Receipts of receivables from related parties - 10.2
Receipt of other borrowings 19.4 1.4
Repayment of other borrowings (6.7) (7.7)
Net cash flows used in financing activities 12.7 (37.0)
     
Net changes in cash and cash equivalents 48.9 60.2
 
Cash and cash equivalents at prior year end 288.1 190.1
Effect of exchange rate fluctuations on cash held (1.5) (2.3)
Total Cash and cash equivalents 335.5 248.0

Styrolution Group GmbH – Unaudited Interim Financial Statements

Notes

1. Reporting entity

Styrolution Group GmbH (the ‘Company’) is an intermediate holding Company which is wholly owned by Styrolution Beteiligungs GmbH, a wholly owned subsidiary of Styrolution Holding GmbH. Styrolution Holding GmbH is a joint venture ultimately owned by two shareholder groups INEOS and BASF. INEOS Industries Holdings Ltd. a subsidiary of INEOS AG owns 50% of the shares of Styrolution Holding GmbH. BASF SE directly owns 18.09% of the shares of Styrolution Holding GmbH and indirectly through BASF Antwerpen N.V. (a wholly owned subsidiary) another 31.91%. The Company is domiciled in Germany and has its registered office at Erlenstrasse 2, 60325 Frankfurt am Main, Germany.

The consolidated interim financial statements of the Company comprise the Company and its subsidiaries (together referred to as the ‘Group’ and individually as ‘Group entities’). The Group is the leading global producer, marketer and merchant seller of styrene monomer and styrenics polymers.

On 30 June 2014 it was announced that the shareholders of Styrolution Holding GmbH signed an agreement for INEOS to acquire BASF’s 50% share in Styrolution. The transaction is subject to conditions including regulatory approval by the appropriate antitrust authorities which is expected to be achieved in the fourth quarter of 2014. Once wholly-owned Styrolution will be run separately as a stand alone company within INEOS and will continue to operate as it does today.

2. Basis for preparation

(a) Statement of compliance

These consolidated interim financial statements of Styrolution Group GmbH for the period ended 30 June 2014 have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not provide all of the information and disclosures included in complete consolidated financial statements and are therefore to be read in conjunction with the consolidated financial statements as of and for the period ending 31 December 2013.

The consolidated interim financial statements were authorized for issue by the Managing Directors on 6 August 2014.

(b) Basis of measurement

The basis of measurement for the consolidated financial statements is generally the historical cost basis except for those financial instruments categories measured at fair value.

(c) Functional and presentation currency

These consolidated interim financial statements are presented in EUR, which is the Company’s functional currency. All financial information presented in EUR has been rounded to the nearest tenth of a million, except when otherwise indicated.

(d) Use of estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

(e) Segment reporting

Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a basis considered reasonable. Unallocated items comprise mainly assets that are used across segments (primarily the Company’s headquarters), head office expenses and tax assets and liabilities. The Company has defined the following operating segments:

  • Polymers EMEA
  • Polymers Americas
  • Polymers Asia
  • Styrene Monomer

Detailed information by segment for the three and six months ended 30 June 2014 is presented in the following tables. Inter-segment-sales of the Styrene Monomer business contain external sales to other Styrolution entities as well as internal consumption within one legal entity.

In millions of EUR   External sales   Inter-segment sales   EBITDA before Special Items
  1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013 1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013 1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013
Polymers EMEA 480.1 553.4 23.6 23.9 44.2 50.3
Polymers Americas 309.6 320.0 2.0 0.2 32.8 20.6
Polymers Asia 272.4 288.9 2.1 2.0 13.2 10.2
Styrene Monomer 351.7 323.6 601.8 655.9 24.7 20.7
Corporate and eliminations     (629.5) (682.0)    
Total 1,413.8 1,485.9 - - 114.9 101.8
In millions of EUR   External sales   Inter-segment sales   EBITDA before Special Items
  1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013 1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013 1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013
Polymers EMEA 972.9 1,103.5 38.4 45.9 91.3 99.3
Polymers Americas 611.8 629.1 3.2 2.4 57.7 34.9
Polymers Asia 506.8 553.3 3.6 3.5 18.5 19.4
Styrene Monomer 734.1 720.1 1,208.7 1,304.3 55.7 42.1
Corporate and eliminations     (1,253.9) (1,356.1) -  
Total 2,825.6 3,006.0 - - 223.3 195.7

The reconciliation of EBITDA before special items to Income before tax is as following:

In millions of EUR   1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013   1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013
 
EBITDA before special items 114.9 101.8 223.3 195.7
Special items (restructuring expenses) (8.9) (6.6) (19.0) (10.4)
Depreciation and Amortization (52.9) (50.5) (107.7) (100.5)
Results from operations 53.1 44.7 96.6 84.8
Net finance costs (9.1) (23.7) (20.5) (22.9)
Income before tax 44.0 21.0 76.1 61.9

EBITDA represents income from operations plus depreciation of property, plant and equipment and amortization of intangible assets. EBITDA before special items represents EBITDA less special items. Although EBITDA and EBITDA before special items should not be considered substitute measures for profit and net cash flow from operating activities, we believe that they provide useful information regarding our ability to meet future debt service requirements. EBITDA and EBITDA before special items may not be comparable to similarly titled measures used by other companies.

3. Financial Indebtedness

In millions of EUR   30 June 2014   31 December 2013
Current liabilities
Short term borrowings from asset securitizations 251.0 250.6
Short term borrowings other 33.9 18.1
Total 284.9 268.7

4. Related parties

In millions of EUR   Transaction value   Balance outstanding   Transaction value   Balance outstanding
  1 January –
30 June 2014
30 June

2014

1 January –
30 June 2013
30 June

2013

Sale of products
BASF 135.1 151.7
INEOS 45.9 71.8
Purchase of raw materials*
BASF 895.9 993.1
INEOS 225.7 271.3
Services received
BASF 56.6 104.8
INEOS 11.4 11.0
Trade and other receivables
BASF 93.8 53.9
INEOS 27.2 11.0
Shareholder 23.4 32.7
Trade and other payables
BASF (132.8) (284.8)
INEOS   (56.5)   (34.3)

* The 2013 figures have been adjusted compared to the Interim Financial Statements for the six months ended 30 June 2013.

5. Income taxes

Income tax expense is recognized based on management’s best estimate of the income tax rate expected for the year 2014 applied to the income before taxes of the second quarter 2014. The Group’s consolidated tax rate for the first six months of 2014 was 16.8%. The effective tax rate was lower than in the comparative period due to the origination of income before tax in jurisdictions with lower tax rates and the use of tax loss carryforwards.

6. Contingencies

In the first half of 2013, Styrolution Americas LLC became defendant in two proceedings having their origin in the termination of a partnership that owns a plant and was contractual partner for certain feedstock processing contracts. The claimants have raised claims for Styrolution’s alleged failure to perform under the contract and filed for arbitration to determine the fair market value of Styrolution’s interest in the partnership. The views of the parties on what is the fair market value of Styrolution’s limited partnership interest vary greatly. A decision by arbitrators is anticipated only in the second half of 2014. Management does not expect that a loss is probable and intends to vigorously defend against the claims raised.

PRESENTATION OF THE STYROLUTION SECOND QUARTER 2014 BUSINESS RESULTS OF OPERATION

The Company prepared this discussion and analysis of its results of operations by comparing its unaudited consolidated interim financial statements of income and cash flows for the second quarters of 2014 and 2013.

In millions of EUR   1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013   %   1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013   %
 
Revenue 1,413.8 1,485.9 (4.9) 2,825.6 3,006.0 (6.0)
Cost of sales (1,259.0) (1,339.1) (6.0) (2,524.0) (2,721.6) (7.3)
Gross profit 154.8 146.8 5.4 301.6 284.4 6.0
 
Selling expenses (66.9) (67.4) (0.7) (133.2) (133.8) (0.4)
General and administrative expenses (23.0) (24.9) (7.6) (46.6) (48.2) (3.3)
Research and development expenses (2.8) (3.3) (15.2) (6.1) (6.6) (7.6)
Other operating expenses (net) (9.0) (6.5) 38.5 (19.1) (11.0) 73.6
Result from operating activities 53.1 44.7 18.8 96.6 84.8 13.9
 
Interest income 0.6 1.0 (40.0) 1.1 1.9 (42.1)
Interest expense (12.1) (13.2) (8.3) (24.9) (25.7) (3.1)
Other finance gain (loss) (net) 2.4 (11.5) n/a 3.3 0.9 >100.0
Net finance costs (9.1) (23.7) (61.6) (20.5) (22.9) (10.5)
             
Income before tax 44.0 21.0 >100.0 76.1 61.9 22.9
Income tax benefit (expense) (10.0) 0.2 n/a (12.8) (13.9) (7.9)
Net income 34.0 21.2 60.4 63.3 48.0 31.9
Attributable to:
Non-controlling interests 0.2 0.2 - 0.4 0.5 (20.0)
Owners of the company 33.8 21.0 61.0 62.9 47.5 32.4

Revenue in the second quarter of 2014 amounts to EUR 1,413.8 million, a decrease of EUR (72.1) million or (4.9%) compared to EUR 1,485.9 million in the second quarter of 2013. Revenue reduced mainly due to lower sales prices across all product groups resulting from lower feedstock prices. The decrease is partly offset by higher sales volume in Styrene Monomer.

Revenue in Polymers Americas decreased slightly due to Styrolution’s value approach and continued restrained customer buying behavior in expectation of price decreases. Lower Polystyrene and ABS sales were partly offset by increased Specialties sales.

Revenue in Polymers EMEA decreased. Weak economic market conditions in the region, lower sales prices because of lower feedstock prices and lower market demand for Polystyrene were the main reasons for the decrease.

Revenue in Polymers Asia decreased mainly as a result of lower sales volumes in Polystyrene and lower sales prices in general because of lower feedstock prices. The decrease in revenue was partly offset by higher sales volumes in Specialties.

Revenue in Styrene Monomer increased in the second quarter due higher sales volume in the Americas region. The increase was partly offset by decreased sales in EMEA and Asia, along with lower sales prices across the regions.

Cost of Sales: Cost of sales decreased by EUR 80.1 million or 6.0% to EUR (1,259.0) million compared to EUR (1,339.1) million in the previous year. This decrease was mainly due to lower raw material prices. This was partly offset by an increase in depreciation and amortization because of higher amortization of the purchase price allocation EUR 2.4 million, as a result of the valuation of the assets at fair value when the joint venture went live, and the accelatered depreciation of the Indian Orchard tangible fixed assets as a result of the announced mothballing of the site.

Gross profit: Gross profit increased by EUR 8.0 million or 5.4% to EUR 154.8 million compared to EUR 146.8 million in the previous year.

Starting in 2013 the Company adopted a value over volume strategy (“value approach”) in its polymers businesses. This resulted in improved profitability and gross profit in most of its business segments. Gross profit was negatively impacted by decreasing feedstock prices, as the Group was selling the inventory which was carried at higher cost of the feedstock at lower sales prices when converted into finished products. This so-called flow-through effect led to a negative impact of approximately EUR 5 million in Q2-2014. In Q2-2013 feedstock prices also decreased, leading to a negative flow-through of approximately EUR 12 million.

Selling expenses: Selling expenses slightly decreased by EUR 0.5 million to EUR (66.9) million in Q2-2014 compared to EUR (67.4) million in the previous year. The small decrease resulted mainly from lower sales volumes.

General and administrative expenses: General and administrative expenses decreased by EUR (1.9) million or (7.6)% to EUR (23.0) million compared to EUR (24.9) million in the previous year. General and administrative expenses were lower in the six month period that ended June 30, 2014 as compared to the same period in 2013 because of synergies from insourced activities that the Company is able to benefit from now that it works off one integrated global SAP system.

Research and development expenses: Research and development expenses slightly decreased by EUR (0.5) million to EUR (2.8) million. The research and development costs are relatively stable, but can be impacted by the phasing of projects and the usage of external consultants. The Group considers it important to continuously invest in new products or product applications.

Other operating expenses: Other operating expenses were EUR (9.0) million, an increase of EUR (2.5) million compared to other operating expenses of EUR (6.5) million in the previous year. The increase was mainly due to the provision for mothballing costs of the Indian Orchard site, USA.

EBITDA before special items: EBITDA before special items increased by EUR 13.1 million or 12.9% from EUR 101.8 million to EUR 114.9 million. The second quarter of 2014 was a better margin quarter in an uncertain economic environment. The increase mainly resulted by improved Specialties and ABS performance across all regions, as well as a better Styrene Monomer business, especially in the Americas.

Net finance results: Interest income and expense were at a similar level compared to the second quarter of 2013. Other finance gains and losses that result from foreign currency gains increased to EUR 2.4 million compared to a loss of EUR (11.5) million in Q2 2013. Foreign currency effects mainly came from translation effects on intra-group loans.

The development of the product groups on a global level for the three and six months period ended 30 June was as following:

In millions of EUR   External sales   EBITDA before Special Items
  1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013   % 1 Apr - 30 Jun 2014   1 Apr - 30 Jun 2013   %
Polystyrene 546.8 633.0 (13.6) 32.8 32.8 -
ABS Standard 209.3 218.1 (4.1) 17.9 14.3 25.2
Specialties 306.0 311.3 (1.7) 39.5 34.0 16.2
Styrene Monomer 351.7 323.5 8.7 24.7 20.7 19.3
Total 1,413.8 1,485.9 (4.9) 114.9 101.8 12.9

* EBITDA represents income from operations plus depreciation of property, plant and equipment and amortization of intangible assets. EBITDA before special items represents EBITDA less special items. Although EBITDA and EBITDA before special items should not be considered substitute measures for profit and net cash flow from operating activities, we believe that they provide useful information regarding our ability to meet future debt service requirements, EBITDA and EBITDA before special items may not be comparable to similarly titled measures used by other companies.

In millions of EUR   External sales   EBITDA before Special Items
  1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013 %   1 Jan - 30 Jun 2014   1 Jan - 30 Jun 2013   %
Polystyrene 1,088.6 1,234.1 (11.8) 65.1 57.2 13.8
ABS Standard 396.9 437.4 (9.3) 31.0 30.4 1.9
Specialties 606.0 614.5 (1.4) 71.5 66.0 8.3
Styrene Monomer 734.1 720.0 2.0 55.7 42.1 32.4
Total 2,825.6 3,006.0 (6.0) 223.3 195.7 14.1

LIQUIDITY AND CAPITAL RESOURCES

The cash flow statement was prepared in accordance with the indirect method. Cash and cash equivalents do not include deposits and guarantees that are not immediately available. These amounts are included in other receivables.

Cash provided from operating activities

Cash provided from operating activities by Styrolution in the first six months of 2014, excluding interest payments, was EUR 107.3 million. The cash flows provided from operations were higher than the result from operations on the income statement due to depreciation and amortization partially offset by working capital impacts. The main impact from the working capital in the first six months of 2014 resulted from the relaunch of the Texas City site after the turnaround completed at the end of 2013 and the seasonal build up of working capital during the first months of 2014. The working capital at the end of December 2013 was very low because of seasonally low trading activities in December 2013 and the reduced inventory at the Texas City site during its turnaround.

Cash used in investing activities

The cash used in investing activities consists of Investment activities in tangible fixed assets (EUR 47.5 million) and internal use software (EUR 2.0 million). Investments in property, plant and equipment in Q1-2014 includes EUR 17.4 million of payments for the Texas City turnaround completed in December 2013.

Cash used in financing activities

The Group uses cash flow in financing activities primarily to finance the operating and investing activities. There were no material movements in the first six months of 2014.

Financing of Styrolution

The financing of the Group is through the issuance of Senior Secured Notes of EUR 480 million, a Trade Receivables Securitization Facility (up to EUR 500 million) and ancillary lines for instruments such as guarantees and letters of credit.

Styrolution is looking to raise sufficient financing to support INEOS to make the purchase price payment to BASF (€ 1.1 billion) and to refinance its existing senior secured notes (€ 480 million). The timing of refinancing and the redemption of the current Senior Secured Notes has not been agreed yet.

The financing of Styrolution and the use of funds at the end of June 2014 of the Group was as follows:

In millions of EUR   30 June 2014   31 December 2013
Senior secured bond* 480.0 480.0
Short term borrowings from asset securitizations 251.0 250.6
Other financing 42.2 26.0
Total Financing 773.2 756.6
Cash and cash equivalents (335.6) (288.1)
Net Debt* 437.6 468.5

* Net debt includes the notional amount of the senior secured bond rather than the carrying amount in accordance with IFRS which is lower than the notional amount due to debt issuance cost that are amortized over the term of the bond.

Short Name: STYROLUTION
Category Code: IR
Sequence Number: 430320
Time of Receipt (offset from UTC): 20140826T095206+0100

Contacts

STYROLUTION GMBH