Shearman & Sterling advised Sasol Limited (“Sasol”) and its affiliates in connection with the entry by Sasol Chemicals North America LLC into a 50/50 joint venture with INEOS Olefins & Polymers USA to construct, finance, own and operate a high-density polyethylene (HDPE) plant in LaPorte, Texas. The firm also advised Sasol on the joint venture’s approximately $420 million Term Loan B financing with Barclays as the lead arranger and bookrunner, with Citigroup also a bookrunner, the proceeds of which will be applied to pay a portion of construction costs.

The plant will have the capability to produce a range of HDPE products but will focus on premium high-growth bimodal pipe and bimodal film resins. This project complements Sasol's North American growth strategy, which encompasses a proposed ethane cracker complex and gas-to-liquids facility in Southwest Louisiana, which is contemplated to be the source of Sasol’s ethylene inputs for the HDPE plant.

The Team