15:28 PM | June 2, 2014 | Vincent Valk
Trinseo, formerly Styron, today launched an initial public offering, aiming to raise $170–190 million through the sale of 10 million common shares. The company has also applied to have its shares listed on the New York Stock Exchange under the symbol TSE. Trinseo filed for an IPO in March. About 21% of the company's shares will be public after the IPO.
Trinseo is Dow Chemical’s former styrenics business, which was acquired by private equity firm Bain Capital (Boston) in 2010 for $1.63 billion. Bain owns 89.5% of the company, with Dow owning 6.8% and the remaining 3.7% owned by company management, including CEO Chris Pappas. Trinseo recorded $5.31 billion in sales during 2013, not including the company’s 50% interest in the Americas Styrenics polystyrene joint venture with Chevron Phillips Chemical.
Most of the net proceeds from the IPO will go towards redeeming $132.5 million in senior secured debt. The debt, due in 2019, carries an interest rate of 8.75% and will be redeemed at a price equal to 103% of the principal, Trinseo says. Bain Capital will retain a majority stake in Trinseo after the IPO closes.
The underwriters of the IPO have an option to buy up to 1.5 million additional shares in Trinseo, the company adds. Goldman Sachs, Deutsche Bank, Citigroup, and Morgan Stanley are the joint book-running managers and representatives of the IPO’s underwriters.