Executive Dossier

Trinseo PLC — 2025 Credit Agreement

Sponsor: Public
Jurisdiction: LSTA / NY law
Agreement: 2025-05-14
Cohort: 2024 sponsor TLs

Material Holder Protections6 rows

Provision	Status	Pct vs Cohort	Comment	Cite
MFN protection on incremental	Yes	55th pct	50 bps, 6-month sunset	§2.01(e)
Sacred rights — pro-rata sharing	Partial	32nd pct	Pre-Serta drafting; ranking not a sacred right	§10.02(b)
Sacred rights — payment modification	Yes	62nd pct	Each affected lender must consent	§10.02(c)
Net-short protection	No		No disqualification provisions	—
Disqualified institution list	Yes	61st pct	Founder-controlled; amendable by Borrower	§1.01
Open-market purchase restrictions	Partial		Permitted but subject to 2.5% cap per quarter	§2.05(b)

Material Aggressive Terms8 rows

Provision	Status	Pct vs Cohort	Comment	Cite
Incremental debt — $500M + 100% EBITDA + 4.25× ratio	Yes	73rd pct	Uncapped ratio headroom; $1.32B available today	§2.01
J.Crew trapdoor — unrestricted sub	Yes	81st pct	No investment cap to unrestricted subsidiaries	§7.03(b)
Serta priming — non-pro-rata	Yes	88th pct	No prohibition; required-lender vote sufficient	§10.02
Chewy dropdown — excluded assets	Partial	78th pct	Collateral carve-outs present; dollar values need 10-K	§7.05
Restricted payments — builder basket	Yes	64th pct	50% of CNI starter; Available Amount reference	§7.02(g)
Prepayment — ECF sweep	Yes	42nd pct	50% with stepdowns at 4.0× and 3.5× leverage	§2.05(c)
Collateral — IP transfer carve-out	Partial	78th pct	Silent on material IP; litigation risk	§7.05(d)
Sale-leaseback capacity	Yes	57th pct	$200M general basket plus ratio	§7.06

Pro forma capital structure$ millions

Tranche	Amount	Rate	Maturity	Leverage
Revolving credit facility First lien · undrawn at close	375.0	SOFR + 325	2030	—
Term loan B First lien · covenant-lite	1,100.0	SOFR + 400	2032	3.75×
2029 senior notes Second lien · 144A	450.0	8.250%	2029	5.29×
ABL facility Working capital · first lien on PP&E	225.0	SOFR + 200	2028	6.06×
Total funded debt	2,150.0	—	—	6.06×

Key considerations

Trinseo's 2025 credit agreement sits comfortably within the aggressive end of the 2024–2025 sponsor-TL cohort, with structural capacity for incremental debt of the greater of $500M and 100% of consolidated EBITDA plus a 4.25× senior-secured ratio.

The J.Crew trapdoor remains open — no investment cap constrains transfers to unrestricted subsidiaries, and material IP is not explicitly carved into the collateral package.

Serta-style priming is not prohibited. Section 10.02 permits non-pro-rata treatment with required-lender consent only. Combined with the builder basket under §7.02(g), lenders without a blocking position face material erosion risk in a liability-management event.

Auto-drafted · analyst-editable in Phase 4