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UsetheselinkstorapidlyreviewthedocumentTableofContents
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Filed Pursuant to Rule 424(b)(7) File No. 333-210226
Prospectus Supplement to Prospectus dated March 15, 2016
TRINSEO S.A.8,000,000 Ordinary Shares
Thesellingshareholdernamedinthisprospectussupplementisoffering8,000,000ofourordinaryshares.Wewillnotreceiveanyproceedsfromthesaleofourordinarysharesbythesellingshareholder.
OurordinarysharesarelistedontheNewYorkStockExchangeunderthesymbol"TSE."OnMay6,2016,thelastsalepriceofourordinarysharesasreportedontheNewYorkStockExchangewas$44.35perordinaryshare.
Investing in our ordinary shares involves substantial risk. Please read "Risk Factors" beginning on page S-9 of thisprospectus supplement and on page 3 of the accompanying base prospectus.
NeithertheSecuritiesandExchangeCommissionnoranyotherregulatorybodyhasapprovedordisapprovedofthesesecuritiesorpassedupontheaccuracyoradequacyofthisprospectussupplementortheaccompanyingprospectus.Anyrepresentationtothecontraryisacriminaloffense.
Per share Total
Publicofferingprice $43.30 $346,400,000
Underwritingdiscountsandcommissions(1) $0.40 $3,200,000
Proceedstosellingshareholder,beforeexpenses $42.90 $343,200,000
(1) See"Underwriting"foradescriptionofcompensationpayabletotheunderwriterbythesellingshareholder.
TheunderwriterexpectstodeliverthesharesagainstpaymentinNewYork,NewYorkonoraboutMay12,2016.
Goldman, Sachs & Co.
ThedateofthisprospectussupplementisMay9,2016
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Prospectus
Wehavenotauthorizedanyonetoprovideanyinformationortomakeanyrepresentationsotherthanthosecontainedinorincorporatedbyreferenceintothisprospectussupplement,theaccompanyingprospectusorinanyfreewritingprospectuseswehaveprepared.Wetakenoresponsibilityfor,andcanprovidenoassuranceastothereliabilityof,anyotherinformationthatothersmaygiveyou.Thisprospectussupplementandtheaccompanyingprospectusareanoffertosellonlythesharesofferedhereby,butonlyundercircumstancesandinjurisdictionswhereitislawfultodoso.Theinformationcontainedinthisprospectussupplementandtheaccompanyingprospectusiscurrentonlyasofthedateoftheapplicabledocument.
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ABOUTTHISPROSPECTUSSUPPLEMENT S-iiNON-GAAPFINANCIALMEASURES S-iiPROSPECTUSSUPPLEMENTSUMMARY S-1RISKFACTORS S-9CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS S-12USEOFPROCEEDS S-14MARKETPRICEOFOURORDINARYSHARES S-15DIVIDENDPOLICY S-16DESCRIPTIONOFSHARECAPITAL S-17MATERIALUNITEDSTATESFEDERALINCOMEANDLUXEMBOURGTAXCONSIDERATIONS S-26SELLINGSHAREHOLDER S-36UNDERWRITING S-37LEGALMATTERS S-42EXPERTS S-42WHEREYOUCANFINDMOREINFORMATION S-42INCORPORATIONOFCERTAININFORMATIONBYREFERENCE S-42
AboutThisProspectus 1AboutTrinseoS.A. 2RiskFactors 3CautionaryNoteRegardingForward-LookingStatements 4UseofProceeds 6SellingShareholder 6PlanofDistribution 7LegalMatters 9Experts 9WhereYouCanFindMoreInformation 9IncorporationofCertainInformationbyReference 9
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ABOUT THIS PROSPECTUS SUPPLEMENT
Unlessotherwiseindicatedorthecontextotherwiserequires,theterms"Trinseo,""we,""us,""our,""ourCompany,"and"ourbusiness"refertoTrinseoS.A.togetherwithitsconsolidatedsubsidiaries.Priortoourformation,ourbusinesseswerewholly-ownedbyTheDowChemicalCompany,whichwerefertoas"Dow."Werefertoourpredecessorbusinessesas"theStyronbusiness."OnJune17,2010,investmentfundsadvisedormanagedbyBainCapitalPrivateEquity,LPacquiredtheStyronbusiness,andDowEuropeHoldingB.V.retainedanownershipinterestintheStyronbusinessthroughanindirectownershipinterestinus.Referencesto"sellingshareholder"and"Parent"refertoBainCapitalEverestManagerHoldingSCA,whoissellingsharespursuanttothisprospectussupplement.
Thisdocumentisintwoparts.Thefirstpartisthisprospectussupplement,whichdescribesthespecifictermsofthisofferingofordinarysharesandcertainothermattersrelatingtous,ourbusinessandprospects.Thesecondpart,theaccompanyingprospectus,containscertainotherinformation.
Theinformationcontainedinthisprospectussupplementmayadd,updateorchangeinformationcontainedintheaccompanyingprospectusorindocumentsthatwefileorhavefiledwiththeSecuritiesandExchangeCommission(the"SEC").Totheextenttheinformationcontainedinthisprospectussupplementdiffersorvariesfromtheinformationcontainedintheaccompanyingprospectusordocumentsincorporatedbyreferencefiledbeforethedateofthisprospectussupplement,theinformationinthisprospectussupplementwillsupersedesuchinformation.
NON-GAAP FINANCIAL MEASURES
WerefertothetermsEBITDA,AdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluationinthisprospectussupplement,theaccompanyingprospectusanddocumentsincorporatedbyreferencehereinandtherein.ThesearesupplementalfinancialmeasuresthatarenotpreparedinaccordancewithU.S.GenerallyAcceptedAccountingPrinciples("GAAP").Anyanalysisofnon-GAAPfinancialmeasuresshouldbeusedonlyinconjunctionwithresultspresentedinaccordancewithGAAP.
Seenote4tothesectiontitled"ProspectusSupplementSummary—SummaryHistoricalFinancialandOperatingData"foradescriptionofthecalculationofEBITDA,AdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluation,includingthereasonsthatwebelievethisinformationisusefultomanagementandwhyitmaybeusefultoinvestors,andareconciliationofEBITDA,AdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluationtothemostcloselycomparablefinancialmeasurecalculatedinaccordancewithGAAP.OurmeasurementsofEBITDA,AdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluationmaynotbecomparabletothoseofothercompanies.
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PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights information appearing elsewhere or incorporated by reference in this prospectus supplement and the accompanyingprospectus. This summary is not complete and does not contain all of the information that you should consider before investing in our ordinary shares. Youshould carefully read this entire prospectus supplement, the accompanying prospectus and the financial data and related notes and other informationincorporated by reference in this prospectus supplement and the accompanying prospectus before deciding whether to invest in our ordinary shares.
Our Company
Wearealeadingglobalmaterialscompanyengagedinthemanufactureandmarketingofsyntheticrubber,latex,andplastics,includingvariousspecialtyandtechnologicallydifferentiatedproducts.Webelievethatgrowthinoverallconsumerspendingandconstructionactivity,increaseddemandintheautomotiveindustryforhigherfuelefficiencyandlighter-weightmaterials,andimprovinglivingstandardsinemergingmarketswillresultingrowthintheglobalmarketsinwhichwecompete.Inaddition,webelieveourincreasingbusinesspresenceindevelopingregionssuchasChina,SoutheastAsia,andEasternEuropefurtherenhancesourprospects.
Wedevelopsyntheticrubber,latexandplasticsproductsthatareincorporatedintoawiderangeofourcustomers'productsthroughouttheworld,includingtiresandotherproductsforautomotiveapplications,carpetandartificialturfbacking,coatedpaperandpackagingboard,foodpackaging,appliances,medicaldevices,consumerelectronicsandconstructionapplications,amongothers.Weseektoregularlydevelopnewandimprovedproductsandprocesses,supportedbyourintellectualpropertyportfolio,designedtoenhanceourcustomers'productofferings.Wehavelong-standingrelationshipswithadiversebaseofglobalcustomers,manyofwhomareleadersintheirmarketsandrelyonusforformulation,technologicaldifferentiation,andcompoundingexpertisetofindsustainablesolutionsfortheirbusinesses.Manyofourproductsrepresentonlyasmallportionofafinishedproduct'sproductioncosts,butprovidecriticalfunctionalitytothefinishedproductandareoftenspecificallydevelopedtocustomerspecifications.Webelievetheseproducttraitsresultinsubstantialcustomerloyaltyforourproducts.
Wehavesignificantmanufacturingandproductionoperationsaroundtheworld,whichallowsustoserveourglobalcustomerbase.AsofDecember31,2015,ourproductionfacilitiesincluded34manufacturingplants(whichincludedatotalof80productionunits)at26sitesacross14countries,includingjointventuresandcontractmanufacturers.OurmanufacturinglocationsincludesitesinemergingmarketssuchasChinaandIndonesia.Additionally,asofDecember31,2015,weoperated11researchanddevelopment("R&D")facilitiesglobally,includingminiplants,developmentcentersandpilotcoaters,whichwebelievearecriticaltoourglobalpresenceandinnovationcapabilities.
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Weareaglobalbusinesswithadiversegeographicrevenuemixandsignificantoperationsaroundtheworld.
ForthethreemonthsendedMarch31,2016,wegeneratednetsalesof$894.1million,AdjustedEBITDAof$143.2million,AdjustedEBITDAexcludinginventoryrevaluationof$152.9million,andnetincomeof$76.7million.In2015,wegeneratednetsalesof$3,972million,AdjustedEBITDAof$492.0million,AdjustedEBITDAexcludinginventoryrevaluationof$550.3million,andnetincomeof$133.6million.AdditionalinformationregardingAdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluation,includingareconciliationofthesemetricstonetincome(loss),isincludedinnote4tothetable"—SummaryHistoricalFinancialandOperatingData."
Corporate Information
Ourglobaloperatingcenterislocatedat1000ChesterbrookBoulevard,Suite300,Berwyn,Pennsylvania19312,andourtelephonenumberatthisaddressis(610)240-3200.Wemaintainawebsiteatwww.trinseo.com.Theinformationon,orthatcanbeaccessedthrough,ourwebsiteisnotpartofthisprospectussupplementortheaccompanyingprospectus,andyoushouldnotrelyonanysuchinformationinmakingthedecisionwhethertopurchaseourordinaryshares.
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The Offering
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Ordinarysharesofferedbythesellingshareholder
8,000,000ordinaryshares.
Ordinarysharesoutstandingafterthisoffering
47,140,870ordinaryshares,excludingtreasuryshares.
UseofproceedsWewillnotreceiveanyoftheproceedsfromthesaleofourordinarysharesbythesellingshareholder.
DividendpolicySinceourinitialpublicoffering,wehavenotdeclaredorpaiddividendsorothercashdistributionsonourordinaryshares.Anyfuturedeterminationtopaydividendsormakeotherdistributionstoourshareholderswillbeatthediscretionofourboardofdirectors.See"DividendPolicy."
RiskfactorsYoushouldreadcarefullytheinformationsetforthunder"RiskFactors"hereinandintheaccompanyingprospectusforadiscussionoffactorsthatyoushouldconsiderbeforedecidingtoinvestinourordinaryshares.
NewYorkStockExchangetradingsymbol
"TSE".
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Summary Historical Financial and Operating Data
Thefollowingtablesetsforthoursummaryhistoricalfinancialandoperatingdataandotherinformationasofthedatesandfortheperiodsindicated.ThehistoricalresultsofoperationsforthethreemonthperiodsendedMarch31,2016and2015,andthehistoricalbalancesheetdataasofMarch31,2016presentedbelowwerederivedfromourunauditedcondensedconsolidatedfinancialstatementsandtherelatednotestheretoincorporatedbyreferenceintothisprospectussupplement.ThehistoricalresultsofoperationsdatafortheyearsendedDecember31,2015,2014,and2013,andthehistoricalbalancesheetdataasofDecember31,2015and2014presentedbelowwerederivedfromourauditedconsolidatedfinancialstatementsandtherelatednotestheretoincorporatedbyreferenceintothisprospectussupplement.ThehistoricalbalancesheetdataasofMarch31,2015wasderivedfromourunauditedcondensedconsolidatedfinancialstatementsandtherelatednotestheretonotincorporatedbyreferenceintothisprospectussupplement.ThehistoricalbalancesheetdataasofDecember31,2013wasderivedfromourauditedconsolidatedfinancialstatementsandtherelatednotestheretonotincorporatedbyreferenceintothisprospectussupplement.ThedatainthefollowingtablerelatedtoEBITDA,AdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluationareunauditedforallperiodspresented.
Ourhistoricalresultsarenotnecessarilyindicativeoftheresultstobeexpectedforanyfutureperiods.
Thissummaryhistoricalfinancialandotherdatashouldbereadinconjunctionwiththedisclosuressetforthunder"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"andtheconsolidatedfinancialstatementsandtherelatednotesthereto,bothofwhichcanbefoundinourQuarterlyReportonForm10-QforthequarterendedMarch31,2016andinourAnnualReportonForm10-KfortheyearendedDecember31,2015,eachofwhichisincorporatedbyreferenceherein.
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Three Months Ended
March 31, Year Ended December 31,
(in millions, except per share data) 2016 2015 2015 2014 2013 Statement of Operations Data: Netsales(1) $ 894.1 $ 1,018.3 $ 3,971.9 $ 5,128.0 $ 5,307.4Costofsales(1) 754.4 915.2 3,502.8 4,830.6 4,949.4Grossprofit 139.7 103.1 469.1 297.4 358.0Selling,generalandadministrativeexpenses 54.5 51.8 208.0 232.6 216.9Equityinearningsofunconsolidatedaffiliates 35.0 36.7 140.2 47.7 39.1Operating income 120.2 88.0 401.3 112.5 180.2Interestexpense,net 18.9 28.9 93.2 124.9 132.0Lossonextinguishmentoflong-termdebt(2) — — 95.2 7.4 20.7Otherexpense,net 2.7 3.5 9.1 27.8 27.9Income (loss) before income taxes 98.6 55.6 203.8 (47.6) (0.4)Provisionforincometaxes 21.9 17.9 70.2 19.7 21.8Net income (loss) $ 76.7 $ 37.7 $ 133.6 $ (67.3) $ (22.2)Weightedaverageshares—basic 48.7 48.8 48.8 43.5 37.3Netincome(loss)pershare—basic $ 1.58 $ 0.77 $ 2.74 $ (1.55) $ (0.60)Weightedaverageshares—diluted 49.1 48.9 49.0 43.5 37.3Netincome(loss)pershare—diluted $ 1.56 $ 0.77 $ 2.73 $ (1.55) $ (0.60)Other Financial Data: Depreciationandamortization $ 23.2 $ 22.5 $ 96.8 $ 103.7 $ 95.2Capitalexpenditures,netofsubsidy(3) 26.4 27.7 107.1 98.6 54.8EBITDA(4) 140.7 107.0 393.8 181.0 226.8AdjustedEBITDA(4) 143.2 108.8 492.0 261.6 277.9AdjustedEBITDAexcludinginventoryrevaluation(4) 152.9 150.9 550.3 326.0 318.3
Balance Sheet Data: Cashandcashequivalents $ 438.4 $ 218.7 $ 431.3 $ 220.8 $ 196.5Workingcapital(5) 888.7 717.7 839.8 748.7 810.2Totalassets(6) 2,331.6 2,195.1 2,258.9 2,356.1 2,574.8Debt(6) 1,222.3 1,198.8 1,207.8 1,202.2 1,336.4Totalliabilities(6) 1,911.6 1,946.2 1,869.9 2,035.3 2,231.6Totalshareholders'equity 420.1 248.9 389.0 320.9 343.2
(1) Netsalesandcostofsalesincreaseordecreasebasedonfluctuationsinrawmaterialprices.Consistentwithindustrypractice,andaspermittedunderagreementswithmanyofourcustomers,rawmaterialpricechangesaregenerallypassedthroughtocustomersbymeansofcorrespondingpricechanges.
(2) FortheyearendedDecember31,2015,thelossonextinguishmentofdebtof$95.2millionrelatedtotheCompany'sdebtrefinancinginMay2015,andwascomprisedofbothacallpremiumandthewrite-offofunamortizeddeferredfinancingfees.FortheyearendedDecember31,2014,thelossonextinguishmentofdebtrelatedtotheJuly2014redemptionof$132.5millioninaggregateprincipalamountofthe2019SeniorNotes,usingaportionoftheproceedsfromourinitialpublicoffering.FortheyearendedDecember31,2013,thelossonextinguishmentofdebtrelatedtotheJanuary2013amendmentofour2018SeniorSecuredCreditFacilityandtherepaymentof
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$1,239.0millionofoutstandingTermLoans.NosuchchargeswererecordedforthethreemonthsendedMarch31,2016and2015,respectively.
(3) Representscapitalexpenditures,netofgovernmentsubsidiesreceivedforsolutionstyrene-butadienerubber,orSSBR,expansionof$2.2millionand$18.8millionfortheyearsendedDecember31,2015and2013,respectively.NogovernmentsubsidieswerereceivedinthethreemonthsendedMarch31,2016and2015orintheyearendedDecember31,2014.FortheyearendedDecember31,2014,capitalexpendituresincludeapproximately$26.1millionforthereacquisitionofproductioncapacityrightsattheCompany'srubberproductionfacilityinSchkopau,Germany.
(4) WebelievethatthepresentationofAdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluationprovidesinvestorswithausefulanalyticalindicatorofourperformanceandofourabilitytoserviceourindebtedness.
WedefineAdjustedEBITDAasincome(loss)fromcontinuingoperationsbeforeinterestexpense,net;incometaxprovision;depreciationandamortizationexpense;lossonextinguishmentoflong-termdebt;assetimpairmentcharges;advisoryfeespaidtoaffiliatesofourParent;gainsorlossesonthedispositionsofbusinessesandassets;restructuringandothernon-recurringitems.Wedescribetheseothercostsinmoredetailbelow.
WepresentAdjustedEBITDAexcludinginventoryrevaluationinordertofacilitatethecomparabilityofresultsfromperiodtoperiodbyadjustingcostofsalestoreflectthecostofrawmaterialduringtheperiod,whichisoftenreferredtoasthereplacementcostmethodofinventoryvaluation.Webelievethismeasureminimizestheimpactofrawmaterialpurchasepricevolatilityinevaluatingourperformance.OurapproachtocalculatinginventoryrevaluationisintendedtorepresentthedifferencebetweentheresultsundertheFIFOandthereplacementcostmethods.However,ourcalculationcoulddifferfromthereplacementcostmethodifthemonthlyrawmaterialstandardsaredifferentfromtheactualrawmaterialpricesduringthemonthandproductionandpurchasevolumesdifferfromsalesvolumesduringthemonth.Thesefactorscouldhaveasignificantimpactontheinventoryrevaluationcalculation.
TherearelimitationstousingfinancialmeasuressuchasAdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluation.TheseperformancemeasuresarenotintendedtorepresentcashflowfromoperationsasdefinedbyGAAPandshouldnotbeusedasalternativestonetincome(loss)asindicatorsofoperatingperformanceortocashflowasmeasuresofliquidity.OthercompaniesinourindustrymaydefineAdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluationdifferentlythanwedo.Asaresult,itmaybedifficulttousetheseorsimilarly-namedfinancialmeasuresthatothercompaniesmayuse,tocomparetheperformanceofthosecompaniestoourperformance.Wecompensatefortheselimitationsbyprovidingreconciliationsoftheseperformancemeasurestoournetincome(loss),whichisdeterminedinaccordancewithGAAP.
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AdjustedEBITDAandAdjustedEBITDAexcludinginventoryrevaluationarecalculatedasfollowsforthethreemonthsendedMarch31,2016and2015andfortheyearsendedDecember31,2015,2014,and2013,respectively:
Three Months Ended
March 31, Year Ended December 31,
(in millions) 2016 2015 2015 2014 2013 Netincome(loss) $ 76.7 $ 37.7 $ 133.6 $ (67.3) $ (22.2)Interestexpense,net 18.9 28.9 93.2 124.9 132.0Provisionforincometaxes 21.9 17.9 70.2 19.7 21.8Depreciationandamortization 23.2 22.5 96.8 103.7 95.2EBITDA(a) $ 140.7 $ 107.0 $ 393.8 $ 181.0 $ 226.8Lossonextinguishmentoflong-termdebt — — 95.2 7.4 20.7Assetimpairmentchargesorwrite-offs(b) — — — — 9.9Netloss(gain)ondispositionofbusinessesandassets(c) — — — (0.6) 4.2Restructuringandothercharges(d) 0.7 0.5 0.8 10.0 10.8Feespaidpursuanttoadvisoryagreement(e) — — — 25.4 4.7Othernon-recurringitems(f) 1.8 1.3 2.2 38.4 0.8Adjusted EBITDA $ 143.2 $ 108.8 $ 492.0 $ 261.6 $ 277.9Inventoryrevaluation 9.7 42.1 58.3 64.4 40.4Adjusted EBITDA excluding inventory revaluation(g) $ 152.9 $ 150.9 $ 550.3 $ 326.0 $ 318.3
(a) WerefertoEBITDAinmakingoperatingdecisionsbecausewebelieveitprovidesmeaningfulsupplementalinformationregardingouroperationalperformance.OthercompaniesinourindustrymaydefineEBITDAdifferentlythanwedo.Asaresult,itmaybedifficulttouseEBITDA,orsimilarly-namedfinancialmeasuresthatothercompaniesmayuse,tocomparetheperformanceofthosecompaniestoourperformance.WecompensatefortheselimitationsbyprovidingreconciliationsofourEBITDAresultstoournetincome(loss),whichisdeterminedinaccordancewithGAAP.Seethe"SelectedSegmentInformation"inourQuarterlyReportonForm10-QforthequarterendedMarch31,2016andourAnnualReportonForm10-KfortheyearendedDecember31,2015forfurtherdetailonEBITDAbyeachofourreportablesegments.
(b) Assetimpairmentchargesorwrite-offsfortheyearendedDecember31,2013relateprimarilytoa$9.2millionimpairmentchargeforfixedassetsatourpolycarbonatemanufacturingplantinStade,Germany.SeeNote7intheconsolidatedfinancialstatementsincludedinourAnnualReportonForm10-KfortheyearendedDecember31,2015forfurtherdiscussion.
(c) Netloss(gain)ondispositionofbusinessesandassetsfortheyearsendedDecember31,2014and2013of$(0.6)millionand$4.2million,respectively,relatetothesaleoftheCompany'sexpandablepolystyrene,orEPS,business,whichclosedinSeptember2013,andforwhichacontingentgainof$0.6millionwasrecordedduringthefourthquarterof2014.RefertoNote3intheconsolidatedfinancialstatementsinourAnnualReportonForm10-KfortheyearendedDecember31,2015forfurtherdiscussion.
(d) RestructuringandotherchargesforthethreemonthsendedMarch31,2016relateprimarilytoemployeeterminationbenefitchargesanddecommissioningchargesincurredinconnectionwiththeAllyn'sPointshutdownwithinourlatexbusiness.Restructuringandotherchargesfor
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thethreemonthsendedMarch31,2015relateprimarilytothepolycarbonaterestructuringwithinourBasicPlastics&FeedstockssegmentandforthereimbursementofdecommissioninganddemolitionchargestoDowinconnectionwiththeshutdownofitsFreeport,Texasfacility.SeeNote16tothecondensedconsolidatedfinancialstatementsincludedinourQuarterlyReportonForm10-QforthequarterendedMarch31,2016forfurtherdiscussion.
RestructuringandotherchargesfortheyearendedDecember31,2015relateprimarilytothepolycarbonaterestructuringwithinourBasicPlastics&FeedstockssegmentforthereimbursementofdecommissioninganddemolitionchargestoDowinconnectionwiththeshutdownofitsFreeport,TexasfacilityandemployeeterminationbenefitchargesincurredinconnectionwiththeAllyn'sPointshutdownwithinourlatexbusiness.RestructuringandotherchargesfortheyearsendedDecember31,2014and2013wereincurredprimarilyinconnectionwiththeshutdownofourlatexmanufacturingplantinAltona,AustraliaandtherestructuringwithinourBasicPlastics&Feedstockssegmentnotedabove.SeeNote20totheconsolidatedfinancialstatementsincludedinourAnnualReportonForm10-KfortheyearendedDecember31,2015forfurtherdiscussion.
NotethattheaccelerateddepreciationchargesincurredasapartoftheAllyn'sPointshutdown,andthe2014polycarbonaterestructuringwithinourBasicPlastics&Feedstockssegment,areincludedwithinthe"Depreciationandamortization"captionabove,andthereforearenotincludedasaseparateadjustmentwithinthiscaption.
(e) RepresentsfeespaidunderthetermsofouradvisoryagreementwithBainCapitalPrivateEquity,LP(the"AdvisoryAgreement").FortheyearendedDecember31,2014,thisincludesachargeof$23.3millionforfeesincurredinconnectionwiththeterminationoftheAdvisoryAgreement,pursuanttoitsterms,uponconsummationoftheCompany'sinitialpublicofferinginJune2014.SeeNote18totheconsolidatedfinancialstatementsincludedinourAnnualReportonForm10-KfortheyearendedDecember31,2015forfurtherdiscussion.
(f) Othernon-recurringitemsforthethreemonthsendedMarch31,2016relatetofeesincurredinconjunctionwiththeCompany'ssecondaryofferingcompletedinMarch2016.SeeNote18inthecondensedconsolidatedfinancialstatementsinourQuarterlyReportonForm10-QforthequarterendedMarch31,2016forfurtherdiscussion.Othernon-recurringitemsforthethreemonthsendedMarch31,2015andfortheyearsendedDecember31,2015and2014consistofcostsrelatedtotheprocessofchangingourcorporatenamefromStyrontoTrinseo.FortheyearendedDecember31,2014,thesecostsalsoincludeaone-time$32.5millionterminationpaymentmadetoDowinconnectionwiththeterminationofourLatexJVOptionAgreement.SeeNote18intheconsolidatedfinancialstatementsinourAnnualReportonForm10-KfortheyearendedDecember31,2015forfurtherdiscussion.
(g) SeethediscussionabovethistableforadescriptionofAdjustedEBITDAexcludinginventoryrevaluation.
(5) Workingcapitalisdefinedascurrentassetsminuscurrentliabilities.
(6) InApril2015,theFinancialAccountingStandardsBoard("FASB")issuedguidancethatrequiresdeferredfinancingfeesrelatedtoarecognizeddebtliabilitybepresentedonthebalancesheetasadirectreductionofthecarryingvalueofthatdebtliability,consistentwithdebtdiscounts.Therecognitionandmeasurementguidancefordeferredfinancingfeesarenotaffected.TheCompanyadoptedthisguidanceeffectiveJanuary1,2016.BalancesasofDecember31,2015presentedhereinhavebeenretrospectivelyadjustedtoreflectthisadoption,withresultingimpactstothecaptions"Totalassets"and"Totalliabilities,"consistentwithourQuarterlyReportonForm10-QforthequarterendedMarch31,2016incorporatedbyreferenceherein.
Balancespresentedforallperiodswithinthe"Debt"captionabovereflectgrossdebtbalancesoutstandingateachperiodend,anddonotreflectareductionforthereclassificationofunamortizeddeferredfinancingfeesnotedabove.
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RISK FACTORS
An investment in our ordinary shares involves various risks. You should carefully consider the following risks and all of the other information contained inthis prospectus supplement and the accompanying prospectus before investing in our ordinary shares. In addition, you should read and consider the risk factorsassociated with our business included in the documents incorporated by reference in this prospectus supplement, including our Annual Report on Form 10-K forthe year ended December 31, 2015. See "Where You Can Find More Information." The risks described below and incorporated herein by reference are thosewhich we believe are the material risks that we face. The trading price of our ordinary shares could decline due to any of these risks, and you may lose all or partof your investment in our ordinary shares.
Risks Related to the Offering
Our share price could be extremely volatile, and, as a result, you may not be able to resell your ordinary shares at or above the price you paid for them.
SinceourinitialpublicofferinginJune2014,thepriceofanordinaryshare,asreportedontheNewYorkStockExchange,hasrangedfromalowof$11.92onNovember14,2014toahighof$47.57onMay4,2016.Inaddition,thestockmarketingeneralhasbeenhighlyvolatile.Asaresult,themarketpriceofourordinarysharesislikelytobesimilarlyvolatile,andinvestorsinourordinarysharesmayexperienceadecrease,whichcouldbesubstantial,inthevalueoftheirshares,includingdecreasesunrelatedtoouroperatingperformanceorprospects,andcouldlosepartoralloftheirinvestment.Thepriceofourordinarysharescouldbesubjecttowidefluctuationsinresponsetoanumberoffactors,includingthosedescribedelsewhereinthisprospectussupplementortheaccompanyingprospectusandotherssuchas:
• variationsinouroperatingperformanceandtheperformanceofourcompetitors;
• actualoranticipatedfluctuationsinourquarterlyorannualoperatingresults;
• publicationofresearchreportsbysecuritiesanalystsaboutusorourcompetitorsorourindustry;
• ourfailureorthefailureofourcompetitorstomeetanalysts'projectionsorguidancethatweorourcompetitorsmaygivetothemarket;
• additionsanddeparturesofkeypersonnel;
• strategicdecisionsbyusorourcompetitors,suchasacquisitions,divestitures,spin-offs,jointventures,strategicinvestmentsorchangesinbusinessstrategy;
• thepassageoflegislationorotherregulatorydevelopmentsaffectingusorourindustry;
• speculationinthepressorinvestmentcommunity;
• changesinaccountingprinciples;
• terroristacts,actsofwarorperiodsofwidespreadcivilunrest;
• naturaldisastersandothercalamities;and
• changesingeneralmarketandeconomicconditions.
Inthepast,securitiesclassactionlitigationhasoftenbeeninitiatedagainstcompaniesfollowingperiodsofvolatilityintheirshareprice.Thistypeoflitigationcouldresultinsubstantialcostsanddivertourmanagement'sattentionandresources,andcouldalsorequireustomakesubstantialpaymentstosatisfyjudgmentsortosettlelitigation.
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There may be sales of a substantial amount of our ordinary shares after this offering by our current shareholders, and these sales could cause the price of ourordinary shares to fall.
AsofMay1,2016,therewere47,140,870ofourordinarysharesoutstanding,excludingtreasuryshares.Ofourissuedandoutstandingshares,alltheordinarysharessoldinourinitialpublicofferingandsubsequentregisteredofferings,includingthisoffering,willbefreelytransferable,exceptforanysharesheldbyour"affiliates,"asthattermisdefinedinRule144undertheSecuritiesAct.FollowingcompletionofthisofferingbasedonthesharesoutstandingasofMay1,2016,approximately40.1%ofouroutstandingordinaryshares,excludingtreasuryshares,willbebeneficiallyownedbyourParentandourofficersanddirectors.
Eachofourdirectors,executiveofficersandourParenthasenteredintoalock-upagreementwiththeunderwriter,whichregulatestheirsalesofourordinarysharesforaperiodof30daysafterthedateofthisprospectussupplement,subjecttocertainexceptions.
Salesofsubstantialamountsofourordinarysharesinthepublicmarketafterthisoffering,ortheperceptionthatsuchsaleswilloccur,couldadverselyaffectthemarketpriceofourordinarysharesandmakeitdifficultforustoraisefundsthroughsecuritiesofferingsinthefuture.Ofthesharestobeoutstandingaftertheoffering,thesharessoldinourinitialpublicofferingandsubsequentregisteredofferings,includingthesharesofferedbythisprospectussupplementandthesharesissuedunderour2014OmnibusIncentivePlan,areeligibleforimmediatesaleinthepublicmarketwithoutrestrictionbypersonsotherthanouraffiliates.Ourremaining18,669,567outstandingsharesownedbyParentwillbecomeavailableforresaleinthepublicmarket,subjecttotheprovisionsofRule144,30daysafterthedateofthisoffering,subjecttocertainexceptions.
Inaddition,asofMarch31,2016,wehad2,572,234ordinarysharesthatareregisteredandreservedforissuanceunderour2014OmnibusIncentivePlan.
If you purchase shares in this offering, you will suffer immediate and substantial dilution.
AsofMarch31,2016,ournettangiblebookvaluepersharewas$3.10.Ifyoupurchaseordinarysharesinthisoffering,youwillincurimmediateandsubstantialdilutionintheproformabookvalueofyourordinarysharesbecausethepricethatyoupaywillbesubstantiallygreaterthanthenettangiblebookvaluedeficiencypershareoftheordinarysharesyouacquire.Youwillexperienceadditionaldilutionupontheexerciseofoptionstopurchaseourordinaryshares,includingthoseoptionscurrentlyoutstandingandthosegrantedinthefuture,andtheissuanceofrestrictedstockunitsorotherequityawardsunderourequityincentiveplans.Totheextentweraiseadditionalcapitalbyissuingequitysecurities,ourshareholderswillexperiencesubstantialadditionaldilution.
Our Parent will continue to have significant influence over us after this offering, which could limit your ability to influence the outcome of key transactions,including a change of control.
WearecurrentlycontrolledbyourParent.Uponcompletionofthisoffering,ourParentwillbeneficiallyown39.6%ofouroutstandingordinaryshares,excludingtreasuryshares,andwillcontinuetobeabletostronglyinfluenceoreffectivelycontrolourdecisions.Immediatelyfollowingthisoffering,directorswhoareaffiliatedwithourParentwillcontinuetoserveonourboardofdirectorsandcouldexerciseacontrollinginfluenceoverourbusinessandaffairs,includinganydeterminationswithrespecttomergersorotherbusinesscombinations,theacquisitionordispositionofassets,theincurrenceofindebtedness,theissuanceofanyadditionalordinarysharesorotherequitysecurities,therepurchaseorredemptionofordinarysharesandthepaymentofdividends.Similarly,ourParentwillcontinuetohavetheabilitytoinfluencetheoutcomeofmatterssubmittedtoavoteofourshareholders.
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Following the consummation of this offering we will no longer be a "controlled company" within the meaning of the NYSE rules and the rules of the SEC.However, we may continue to rely on exemptions from certain corporate governance requirements during a one-year transition period.
FollowingtheconsummationofthisofferingourParentwillnolongercontrolamajorityofthevotingpowerofouroutstandingordinaryshares.BasedonthenumberofordinarysharesoutstandingasofMay1,2016,excludingtreasuryshares,ourParentcurrentlyownsapproximately56.6%ofourordinarysharesand,afterthecompletionofthisoffering,willownapproximately39.6%ofourordinarysharesoutstanding,excludingtreasuryshares.Asaresult,followingtheconsummationofthisofferingwewillnolongerbea"controlledcompany"withinthemeaningofthelistingrulesoftheNYSE.Consequently,undertheNYSElistingrules,aftertheconsummationofthisofferingwewillberequiredto(i)appointamajorityofindependentdirectorstoourboardofdirectorswithinoneyearofthedatewenolongerqualifyasa"controlledcompany,"(ii)appointamajorityofindependentdirectorstoeachofthecompensationandnominatingandcorporategovernancecommitteeswithin90daysofthedatewenolongerqualifyasa"controlledcompany"andsuchcommitteesmustbecomposedentirelyofindependentdirectorswithinoneyearofsuchdate,and(iii)haveanannualperformanceevaluationofthenominatingandcorporategovernanceandcompensationcommittees.Duringthesetransitionperiods,wemaycontinuetoutilizetheavailableexemptionsfromcertaincorporategovernancerequirementsaspermittedbytheNYSElistingrules.Accordingly,duringthetransitionperiods,youwillnothavethesameprotectionsaffordedtoshareholdersofcompaniesthataresubjecttoalloftheNYSEcorporategovernancestandards.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Thisprospectus,includinginformationincorporatedbyreferenceherein,containsforward-lookingstatementsincluding,withoutlimitation,statementsconcerningplans,objectives,goals,projections,strategies,futureeventsorperformance,andunderlyingassumptionsandotherstatements,whicharenotstatementsofhistoricalfacts.Forward-lookingstatementsmaybeidentifiedbytheuseofwordslike"expect,""anticipate,""intend,""forecast,""outlook,""will,""may,""might,""potential,""likely,""target,""plan,""contemplate,""seek,""attempt,""should,""could,""would"orexpressionsofsimilarmeaning.Forward-lookingstatementsreflectmanagement'sevaluationofinformationcurrentlyavailableandarebasedonourcurrentexpectationsandassumptionsregardingourbusiness,theeconomyandotherfutureconditions.Becauseforward-lookingstatementsrelatetothefuture,theyaresubjecttoinherentuncertainties,risksandchangesincircumstancesthataredifficulttopredict.Specificfactorsthatmayimpactperformanceorotherpredictionsoffutureactionshave,inmanybutnotallcases,beenidentifiedinconnectionwithspecificforward-lookingstatements.Ouractualresultsmaydiffermateriallyfromthosecontemplatedbytheforward-lookingstatements.Theyareneitherstatementsofhistoricalfactnorguaranteesorassurancesoffutureperformance.Importantfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseintheforward-lookingstatementsincludeeconomic,business,competitive,marketandregulatoryconditionsandthefollowing:
• ourcurrentlevelofindebtedness;
• thestabilityofourjointventures;
• changesinregulationsinthejurisdictionswherewemanufacture;
• lawsuitsresultingfromproductsoroperations;
• volatilityincostsordisruptioninthesupplyoftherawmaterialsutilizedforourproducts;
• hazardsassociatedwithchemicalmanufacturing;
• thecompetitivenatureofourendmarkets;
• ourcontinuedrelianceonourrelationshipwithTheDowChemicalCompany;
• ourcompliancewithenvironmental,healthandsafetylaws;
• conditionsintheglobaleconomyandcapitalmarkets;
• anydisruptionsinproductionatourmanufacturingfacilities;
• increasesinthecostofenergy;
• ourabilitytomaintainthenecessarylicensesandpermitsweneedforouroperations;
• failuretomaintainaneffectivesystemofinternalcontrols;
• currentinsurancenotcoveringallpotentialexposures;
• theoutcomeofcertaingovernmentinvestigations;
• changesinlawsandregulationsapplicabletoourbusiness;
• ourdependenceuponkeyexecutivemanagementandanyinabilitytoattractandretainotherqualifiedmanagementpersonnel;
• fluctuationsincurrencyexchangerates;
• strategicacquisitionsaffectingcurrentoperations;
• ourabilitytoreceivedistributionsfromoursubsidiariesandjointventures;
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• theoutcomeoftheongoinginvestigationinvolvingoneofourjointventures;
• thelossofcustomers;
• anyinabilitytocontinuetechnologicalinnovationandsuccessfulintroductionofnewproducts;
• anyinabilitytoprotectourtrademarks,patentsorotherintellectualpropertyrights;
• datasecuritybreaches;
• failureofourassumptionsandprojectionstobeaccurate;
• localbusinessrisksindifferentcountriesinwhichweoperate;
• seasonalityofourbusiness;and
• otherrisksdescribedinthe"RiskFactors"sectionofthisprospectusandtheapplicableprospectussupplement.
Wederivemanyofourforward-lookingstatementsfromouroperatingbudgetsandforecasts,whicharebaseduponmanydetailedassumptions.Whilewebelievethatourassumptionsarereasonable,wecautionthatitisverydifficulttopredicttheimpactofknownfactors,anditisimpossibleforustoanticipateallfactorsthatcouldaffectouractualresults.Importantfactorsthatcouldcauseactualresultstodiffermateriallyfromourexpectations,orcautionarystatements,aredisclosedunderthesectionentitled"RiskFactors"andthesectionsentitled"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"fromourAnnualReportonForm10-K,incorporatedbyreferenceintothisprospectus.Allwrittenandoralforward-lookingstatementsattributabletous,orpersonsactingonourbehalf,areexpresslyqualifiedintheirentiretybythecautionarystatementsaswellasothercautionarystatementsthataremadefromtimetotimeinourotherpubliccommunications.Youshouldevaluateallforward-lookingstatementsmadeinthisprospectusandthedocumentsincorporatedbyreferencehereininthecontextoftheserisksanduncertainties.
Wecautionyouthattheimportantfactorsreferencedabovemaynotcontainallofthefactorsthatareimportanttoyou.Inaddition,wecannotassureyouthatwewillrealizetheresultsordevelopmentsweexpectoranticipateor,evenifsubstantiallyrealized,thattheywillresultintheconsequencesoraffectusorouroperationsinthewayweexpect.Theforward-lookingstatementsincludedinthisprospectusandthedocumentsincorporatedbyreferencehereinaremadeonlyasofthedateoftheapplicabledocument.Weundertakenoobligationtopubliclyupdateorreviseanyforward-lookingstatementasaresultofnewinformation,futureeventsorotherwise,exceptasotherwiserequiredbylaw.
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USE OF PROCEEDS
Wewillnotreceiveanyproceedsfromthesaleofourordinarysharesbythesellingshareholder.
See"SellingShareholder"and"Underwriting."
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MARKET PRICE OF OUR ORDINARY SHARES
OurordinaryshareshavebeenlistedontheNewYorkStockExchangeunderthesymbol"TSE"sinceJune12,2014.Priortothattime,therewasnopublicmarketforourordinaryshares.ThefollowingtablesetsforthfortheperiodsindicatedthehighandlowsalepricesofourordinarysharesontheNewYorkStockExchange.
Arecentreportedclosingpriceforourordinarysharesissetforthonthecoverpageofthisprospectussupplement.AmericanStockTransferandTrustCompany,LLCisthetransferagentandregistrarforourordinaryshares.AsofApril30,2016,therewere2holdersofrecordofourordinaryshares.
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Fiscal Quarter High Low 2014: Secondquarter(fromJune12,2014) $ 22.99 $ 20.00Thirdquarter $ 21.78 $ 15.54Fourthquarter $ 18.84 $ 11.922015: Firstquarter $ 20.76 $ 14.14Secondquarter $ 30.44 $ 19.42Thirdquarter $ 33.69 $ 23.46Fourthquarter $ 32.96 $ 24.802016: Firstquarter $ 39.23 $ 21.92Secondquarter(throughMay6,2016) $ 47.57 $ 36.19
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DIVIDEND POLICY
Sinceourinitialpublicoffering,wehavenotdeclaredorpaiddividendsorothercashdistributionsonourordinaryshares.Instead,wehaveretainedearningstofundthedevelopmentandgrowthofourbusinessandtorepayindebtedness.Paymentofdividendsonourordinarysharesissubjecttothedeterminationanddeclarationbyourboardofdirectors,andunderLuxembourglawtheapprovalofourshareholders.Luxembourglawalsolimitstheamountsthatmaybedistributedtoourshareholders.UnderLuxembourglaw,cashdividendsmustbepaidfromstatutoryaccountingprofitsandapprovedbyshareholders.TrinseoS.A.doesnothavestatutoryaccountingprofitsasaholdingcompanywithoutoperations.
Luxembourglawalsopermitscashdistributionstoshareholdersthroughtherepaymentofshareholderequity.Theamountofthisdistributionmaynotcausetheannualnon-consolidatedstatutorynetassetsofTrinseoS.A.tofallbelowtheaggregateofitsissuedandsubscribedsharecapitalandlegalreserves.Weplantorequestfromourshareholderstheauthorityforourboardofdirectorstomakeequityrepaymentsatournextannualmeeting.Nevertheless,evenifwereceivethisauthorizationfromourshareholders,itdoesnotrequirethatourboardofdirectorsdeclareandmakeanequityrepayment,orguaranteethattheywilldosointhefuture.
Ourabilitytopaydividendsonourordinarysharesisalsolimitedbyrestrictionsontheabilityofoursubsidiariestopaydividendsormakedistributionstous,includingrestrictionsunderthetermsofthecreditagreementgoverningoursubsidiaries'indebtedness.Additionally,oursubsidiariesarelocatedinavarietyofjurisdictions,whichcouldimposeadditionalrestrictionsorlimitationsontheabilityofthesesubsidiariestopaydividendsormakedistributionstous.
Anyfuturedeterminationtopaydividendsormakeotherdistributionstoourshareholderswillbeatthediscretionofourboardofdirectors,subjecttocompliancewithcovenantsincurrentandfutureagreementsgoverningourindebtednessandapplicableLuxembourglaw,andwilldependuponourresultsofoperations,financialcondition,capitalrequirementsandotherfactorsthatourboardofdirectorsdeemsrelevant.
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DESCRIPTION OF SHARE CAPITAL
Thefollowingisasummaryofsomeofthetermsofourordinaryshares,basedonourarticlesofassociation.
Thefollowingsummaryissubjectto,andisqualifiedinitsentiretybyreferenceto,theprovisionsofourarticlesofassociation,theformofwhichhasbeenfiledasanexhibittotheregistrationstatementofwhichthisprospectusisapart.Youmayobtaincopiesofourarticlesofassociationasdescribedunder"WhereYouCanFindMoreInformation"inthisprospectus.
General
TrinseoS.A.isaLuxembourgpubliclimitedliabilitycompany(société anonyme ).Thecompany'slegalnameis"TrinseoS.A."TrinseoS.A.wasincorporatedonJune3,2010asaLuxembourgprivatelimitedliabilitycompany(société à responsabilité limitée )andwasconvertedintoaLuxembourgpubliclimitedliabilitycompanyonApril29,2011.
TrinseoS.A.isregisteredwiththeLuxembourgRegistryofTradeandCompaniesundernumberB153.549.TrinseoS.A.hasitsregisteredofficeat4,rueLouHemmer,L-1748Luxembourg,GrandDuchyofLuxembourg.
ThecorporatepurposeofTrinseoS.A.isstatedinArticle3ofitsarticlesofassociation.Thispurposeincludestheacquisitionofparticipations,inLuxembourgorabroad,inanycompanyorenterpriseinanyformwhatsoever,andthemanagement,developmentandsaleofthoseparticipations.TrinseoS.A.mayacquireandsell,bysubscription,purchaseandexchangeorinanyothermanner,anystock,sharesandotherparticipationsecurities,bonds,debentures,certificatesofdepositandotherdebtinstrumentsand,moregenerally,anysecuritiesandfinancialinstrumentsissuedbyanypublicorprivateentity.Itmayparticipateinthecreation,development,managementandcontrolofanycompanyorenterprise.Furthermore,itmayinvestintheacquisitionandmanagementofaportfolioofpatentsorotherintellectualpropertyrightsofanynatureororigin.
Additionally,TrinseoS.A.mayborrowinanyformandproceedtoissuedebtbyprivateorpublicofbonds,convertiblebondsanddebenturesoranyothersecuritiesorinstrumentsitdeemsfit.Ingeneral,TrinseoS.A.maygrantassistance(bywayofloans,advances,guaranteesorsecuritiesorotherwise)tocompaniesorotherenterprisesinwhichTrinseoS.A.hasaninterestorwhichformpartofthegroupofcompaniestowhichTrinseoS.A.belongsoranyotherentityasTrinseoS.A.maydeemfit.
TrinseoS.A.mayuseanytechniques,legalmeansandinstrumentstomanageitsinvestmentsintheparticipationsefficientlyandprotectitselfagainstcreditrisks,currencyexchangeexposure,interestraterisks,andotherrisk.Finally,itcanalsoperformallcommercial,financialorindustrialoperationandanytransactionwithrespecttorealestateormovableproperty,whichdirectlyorindirectlysupportsorrelatestoitscorporatepurpose.
Share Capital
AsofMay1,2016,ourissuedsharecapitalamountsto$487,779.34,representedby48,777,934issuedordinaryshares,including1,637,064ordinarysharesheldintreasury,eachwithanominalvalueof$0.01pershare.Allissuedshareswerefullypaid.OurtreasuryshareshavenovotingrightsoranyrightstoreceivedividendsorotherdistributionsmadebytheCompany.
Ourarticlesofassociationauthorizeourboardofdirectorstoissueordinaryshareswithinthelimitsoftheauthorizedsharecapitalatsuchtimesandonsuchtermsasourboardofdirectorsmaydecideforaperiodcommencingonthedateofpublicationofouramendedarticlesofassociation(i.e.,June11,2014)andendingfiveyearsafterthedateonwhichtheminutesoftheshareholders'
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meetingapprovingsuchauthorizationarepublishedintheLuxembourgofficialgazetteMémorial C, Recueil des Sociétés et Associations (unlesssuchperiodisextended,amendedorrenewed).Accordingly,ourboardisauthorizedtoissueupto50,000,000,000ordinarysharesduringsuchperiod.Wecurrentlyintendtoseekrenewalsand/orextensionsasrequiredfromtimetotime.
Ourauthorizedsharecapitalisdeterminedbyourarticlesofassociation,asamendedfromtimetotime,andmaybeincreased,reducedorextendedbyamendingthearticlesofassociationbyapprovaloftherequisitetwo-thirdsmajorityofthevotesataquorateextraordinarygeneralshareholders'meeting.
UnderLuxembourglaw,ourshareholdersbenefitfromapre-emptivesubscriptionrightontheissuanceofsharesforcashconsideration.However,ourshareholdershave,inaccordancewithLuxembourglaw,authorizedtheboardofdirectorstosuppress,waiveorlimitanypre-emptivesubscriptionrightsofshareholdersprovidedbylawtotheextenttheboarddeemssuchsuppression,waiverorlimitationadvisableforanyissuanceorissuancesofshareswithinthescopeofourauthorizedsharecapital.Suchsharesmaybeissuedabove,atorbelowmarketvaluebutinanyeventnotbelowthenominalvalueperordinaryshareaswellasbywayofincorporationofavailablereserves(includingpremium).
Theboardofdirectorswillresolveonasharesissuanceforwhichitintendstowaiveorlimitanypre-emptivesubscriptionrightsofshareholdersinaccordancewiththequorumandvotingthresholdssetforthinourarticlesofassociation.Theboardofdirectorswillalsoresolveontheapplicableproceduresandtimelinestowhichitwill,orhasto,subjectsuchissuance.Iftheproposaloftheboardofdirectorstoissuenewsharesexceedsthelimitsoftheourauthorizedsharecapital,theboardofdirectorsmustthenconvenetheshareholderstoanextraordinarygeneralmeetingtobeheldinthepresenceofaLuxembourgnotaryforthepurposeofincreasingtheissuedsharecapitalaccordinglyandprioritizingtheissueofsharesexceedingthelimitoftheauthorizedsharecapital.Thismeetingwillbesubjecttothetwo-thirdmajorityofthevotesataquorateextraordinarygeneralshareholders'meeting.Ifacapitalcallproposedbytheboardofdirectorsconsistsofanincreaseintheshareholders'commitments,theboardofdirectorsmustthenconvenetheshareholderstoanextraordinarygeneralmeetingtobeheldinthepresenceofaLuxembourgnotaryforsuchpurpose.Thismeetingwillbesubjecttotheunanimousconsentoftheshareholders.
Form and Transfer of Shares
OurordinarysharesareissuedinregisteredformonlyandarefreelytransferableunderLuxembourglawandourarticles,providedthatourboardofdirectorsmayimposetransferrestrictionsforsharesthatareregistered,listed,quoted,dealtin,orhavebeenplacedincertainjurisdictionsincompliancewiththeapplicablerequirements.LuxembourglawdoesnotimposeanylimitationsontherightsofLuxembourgornon-Luxembourgresidentstoholdorvoteourordinaryshares.
UnderLuxembourglaw,theownershipofregisteredsharesisestablishedbytheinscriptionofthenameoftheshareholderandthenumberofsharesheldbyhimorherintheshareholdersregister(registre des actionnaires )heldbyusatourregisteredofficeinLuxembourg.Atalltimes,wekeepacopyoftheshareholdersregisterinatourregisteredofficeinLuxembourg.Eachtransferofsharesshallbepromptlymadeknowntousaswellasanychangestotheshareholdersregisterandwerecordsuchchangeintheshareholdersregisterheldatourregisteredoffice.ForpurposesofLuxembourglaw,ownershipofourordinarysharesisevidencedthroughregistrationfromtimetotimeintheshareholdersregisterheldatourregisteredoffice,andsuchregistrationisameansofevidencingtitletotheshares.Fortheavoidanceofdoubt,incaseofdiscrepancybetweentheshareholdersregisterheldbyusatourregisteredofficeinLuxembourgandanyotherseparateregisterforthesharesheldbyentitiesinLuxembourgorinotherjurisdictions,theshareholdersregister(registre desactionnaires )heldbyusatourregisteredofficeinLuxembourgshallprevail.
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Withoutprejudicetotheconditionsfortransferbybookentrywheresharesarerecordedintheshareholderregisteronbehalfofoneormorepersonsinthenameofadepository,eachtransferofsharesshallbeeffectedbywrittendeclarationoftransfertoberecordedintheshareholderregister,suchdeclarationtobedatedandsignedbythetransferorandthetransferee,orbytheirdulyappointedagents.Wemayacceptandenterintotheshareholderregisteranytransferofshareseffectedpursuanttoanagreementoragreementsbetweenthetransferorandthetransferee,trueandcompletecopiesofwhichhavebeendeliveredtous.
Ourarticlesofassociationprovidethatwemayappointregistrarsindifferentjurisdictions,eachofwhommaymaintainaseparateregisterforthesharesenteredinsuchregisterandtheholdersofsharesshallbeenteredintooneoftheregistersandpromptlymadeknowntousforpurposesofregistrationintheshareholders'register(registre des actionnaires )heldbyusatourregisteredofficeinLuxembourg.Shareholdersmayelecttobeenteredintooneoftheseregistersandtotransfertheirsharestoanotherregistersomaintained.Entriesintheseregistersisreflectedintheshareholders'registermaintainedatourregisteredoffice.
Inaddition,ourarticlesofassociationalsoprovidethatourordinarysharesmaybeheldthroughasecuritiessettlementsystemoraprofessionaldepositoryofsecurities.Ordinarysharesheldinsuchmannerhavethesamerightsandobligationsasordinarysharesrecordedinourshareholders'register.Furthermore,ordinarysharesheldthroughasecuritiessettlementsystemoraprofessionaldepositoryofsecuritiesmaybetransferredinaccordancewithcustomaryproceduresforthetransferofsecuritiesinbook-entryform,thetransferbeingeffectiveuponnotificationtousandregistrationintheshareholders'register(registre desactionnaires )heldbyusatourregisteredofficeinLuxembourg.
Issuance of Shares
PursuanttotheLuxembourglawoncommercialcompaniesdatedAugust10,1915,asamended,whichwerefertoastheLuxembourgCorporateLaw,theissuanceofordinarysharesrequirestheamendmentofourarticlesofassociationbyapprovaloftherequisitetwo-thirdsmajorityofthevotesataquorateextraordinarygeneralshareholders'meeting(see"—GeneralMeetingofShareholders"and"—AmendmenttotheArticlesofAssociation").ThegeneralmeetingmaydetermineanauthorizedsharecapitalandauthorizetheboardofdirectorstoissueordinarysharesuptothemaximumamountofsuchauthorizedsharecapitalforamaximumperiodoffiveyearsasfromthedateofpublicationintheLuxembourgofficialgazette(Mémorial C, Recueil des Sociétés et Associations )oftheminutesoftherelevantgeneralmeeting.Thegeneralmeetingofshareholdersmayamend,reneworextendsuchauthorizedsharecapitalandsuchauthorizationtotheboardofdirectorstoissueshares.
Ourarticlesprovidethatnofractionalsharesshallbeissued.
Ourordinaryshareshavenoconversionrightsandtherearenoredemptionorsinkingfundprovisionsapplicabletoourordinaryshares.
Pre-Emptive Rights
Unlesslimited,waivedorcancelledbyourboardofdirectors,holdersofourordinaryshareshaveaproratapre-emptiverighttosubscribeforanynewsharesissuedforcashconsideration.Ourarticlesofassociationprovidethatpre-emptiverightscanbelimited,waivedorcancelledbyourboardofdirectorsforaperiodendingonthefifthanniversaryofthedateonwhichtheminutesoftheshareholders'meetingapprovingsuchauthorizationarepublishedintheLuxembourgOfficialGazette(Mémorial C, Recueil des Sociétés et Associations ),meaningJune11,2019,unlesssuchperiodisextended,amendedorrenewed,intheeventofanincreaseofthesharecapitalbytheboardofdirectorswithinthelimitsoftheauthorizedsharecapital.
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Repurchase of Shares
Wecannotsubscribeforourownordinaryshares.
Wemay,however,repurchaseissuedordinarysharesorhaveanotherpersonrepurchaseissuedordinarysharesforouraccount,subjecttothefollowingconditions:
• priorauthorizationbyasimplemajorityvoteatanordinarygeneralmeetingofshareholders,whichauthorizationsetsforththetermsandconditionsoftheproposedrepurchaseandinparticularthemaximumnumberofordinarysharestoberepurchased,thedurationoftheperiodforwhichtheauthorizationisgiven(whichmaynotexceedfiveyears)and,inthecaseofrepurchaseforconsideration,theminimumandmaximumconsiderationpershare;
• therepurchasemaynotreduceournetassetsonanon-consolidatedbasistoalevelbelowtheaggregateoftheissuedandsubscribedsharecapitalandthereservesthatwemustmaintainpursuanttoLuxembourglaworourarticlesofassociation;and
• onlyfullypaid-upsharesmayberepurchased.
Thegeneralmeetingofshareholdersauthorizedtheboardofdirectorstorepurchaseupto10%oftheissuedsharecapital.Theauthorizationisvalidforaperiodendingontheearlierof5yearsfromthedateofthedecision(meaninguntilMay30,2019)orthedateofitsrenewalbyasubsequentgeneralmeetingofshareholders.Pursuanttosuchauthorization,theboardofdirectorsisauthorizedtoacquireandsellordinarysharesintheCompanyundertheconditionssetforthinArticle49-2oftheLuxembourgCorporateLaw.Suchpurchasesandsalesmaybecarriedoutforanyauthorizedpurposeoranypurposethatisauthorizedbythelawsandregulationsinforce.
Thepurchasepriceperordinarysharetobepaidshallnotrepresentmorethan$1,000andshallnotbelessthan$0.01.
Inaddition,pursuanttoLuxembourglaw,TrinseoS.A.maydirectlyorindirectlyrepurchaseordinarysharesbydecisionofourboardofdirectorswithoutthepriorapprovalofthegeneralmeetingofshareholdersifsuchrepurchaseisdeemedbytheboardofdirectorstobenecessarytopreventseriousandimminentharmtousoriftheacquisitionofshareshasbeenmadeinviewofthedistributionthereoftoemployees.
Capital Reduction
Ourarticlesofassociationprovidethatourissuedsharecapitalmaybereduced,subjecttotheapprovalorpriorauthorizationoftherequisitetwo-thirdsmajorityofthevotesataquorateextraordinarygeneralshareholders'meeting.
General Meeting of Shareholders
AnyregularlyconstitutedgeneralmeetingofshareholdersofTrinseoS.A.representstheentirebodyofshareholdersofTrinseoS.A.
Eachofourordinarysharesentitlestheholderthereoftoattendourgeneralmeetingofshareholders,eitherinpersonorbyproxy,toaddressthegeneralmeetingofshareholders,andtoexercisevotingrights,subjecttotheprovisionofourarticlesofassociation.Eachordinaryshareentitlestheholdertoonevoteatageneralmeetingofshareholders.Ourarticlesofassociationprovidethatourboardofdirectorsshalladoptallotherregulationsandrulesconcerningtheattendancetothegeneralmeeting,andavailabilityofaccesscards,proxyformsinordertoenableshareholderstoexercisetheirrighttovoteasitdeemsfit.
Ashareholdermayparticipateatanygeneralmeetingofshareholdersbyappointinganotherperson(whoneednotbeashareholder)ashisproxy,theappointmentofwhichshallbeinwriting.Our
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articlesofassociationprovidethatourboardofdirectorsmaydetermineadatebywhichweorouragentsmusthavereceiveddulycompletedproxyformsinorderforsuchformtobetakenintoaccountatthegeneralmeeting.
Whenconveningageneralmeetingofshareholders,wewillpublishanotice(whichmustbepublishedatleast30dayspriortothegeneralmeetingdate)intheMémorial C, Recueil des Sociétés et Associations ,andinaLuxembourgnewspaper.OurarticlesofassociationprovidethatnoticeoftheconveningofthegeneralmeetingofshareholderswillalsobeprovidedinaformofeasilyaccessiblemediawhichisreasonablybeexpectedtoberelieduponfortheeffectivedisseminationofinformationtothepublicandthroughouttheEuropeanEconomicArea.
Therightofashareholdertoparticipateinageneralmeetingofshareholdersandexercisevotingrightsisdeterminedbyreferencetothenumberofsharesheldbytheshareholderatmidnight(00:00)ontherecorddate,whichmaybethedayfalling14daysbeforethedateofthegeneralmeetingofshareholdersoranotherdaysetbyourboardofdirectorsandmentionedintheconveningnotice.Eachshareholdershall,onorbeforetherecorddate,indicatetousitsintentiontoparticipateinpersonatthegeneralmeetingofshareholders.TrinseoS.A.determinesthemannerinwhichthisdeclarationismade.Proofofthequalificationasashareholdermayonlybethosenecessarytoensuretheidentificationofshareholders.OurBoardmaydetermineanyotherconditionsthatmustbefulfilledbytheshareholdersforthemtotakepartinanygeneralmeetingofshareholdersinpersonorinproxy.
TheannualordinarygeneralmeetingofshareholdersofTrinseoS.A.isheldat2:00p.m.(CentralEuropeanTime)onthefirstMondayofJuneofeachyearattheregisteredofficeoftheCompanyorinanyotherplacewithinthemunicipalityoftheregisteredofficeoftheCompanyintheGrandDuchyofLuxembourg,asnoticedtotheshareholders,orabroad,iftheboardofdirectorsconsidersinitsabsoluteandfinaljudgment,thatexceptionalcircumstancessorequire.IfthatdayisnotabusinessdayinLuxembourg,themeetingwillbeheldonthenextfollowingbusinessday.
Luxembourglawprovidesthattheboardofdirectorsisobligedtoconveneageneralmeetingofshareholdersifshareholdersrepresenting,intheaggregate,10%oftheissuedsharecapitalsorequestinwritingwithanindicationofthemeetingagenda.Insuchcase,thegeneralmeetingofshareholdersmustbeheldwithinonemonthoftherequest.Iftherequestedgeneralmeetingofshareholdersisnotheldwithinonemonth,shareholdersrepresenting,intheaggregate,10%oftheissuedsharecapitalmaypetitionthecompetentpresidentofthedistrictcourtinLuxembourgtohaveacourtappointeeconvenethemeeting.Luxembourglawprovidesthatshareholdersrepresenting,intheaggregate,10%oftheissuedsharecapitalmayrequestthatadditionalitemsbeaddedtotheagendaofageneralmeetingofshareholders.ThatrequestmustbemadebyregisteredmailsenttotheregisteredofficeoftheCompanyatleastfivedaysbeforethegeneralmeetingofshareholders.
Voting Rights
Eachshareentitlestheholderthereoftoonevoteatageneralmeetingofshareholders.Luxembourglawdistinguishesordinaryresolutionsandextraordinaryresolutions.
Extraordinaryresolutionsrelatetoproposedamendmentstothearticlesofassociationandcertainotherlimitedmatters.Allotherresolutionsareordinaryresolutions.
Ordinary Resolutions
Pursuanttoourarticlesofassociation,foranyordinaryresolutionstobeconsideredatageneralmeeting,thequorumatsuchmeetingmustbeatleastfiftypercent(50%)oftheissuedsharecapitaloftheCompany(unlessotherwisemandatorilyrequiredbylaw)andsuchordinaryresolutionsshallbeadoptedbyasimplemajorityofvotesvalidlycastonsuchresolution.Abstentionsarenotconsidered"votes."
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Extraordinary Resolutions
Extraordinaryresolutionsarerequiredforanyofthefollowingmatters,amongothers:(a)anincreaseordecreaseoftheauthorizedorissuedcapital,(b)alimitationorexclusionofpreemptiverights,(c)approvalofastatutorymergerorde-merger(scission),(d)dissolutionandliquidationofTrinseoS.A.and(e)anyandallamendmentstoourarticlesofassociation.Pursuanttoourarticlesofassociation,foranyextraordinaryresolutionstobeconsideredatageneralmeetingthequorumshallbeatleastone-half(50%)oftheissuedsharecapitaloftheCompanyunlessotherwisemandatorilyrequiredbylaw.Ifthesaidquorumisnotpresent,asecondmeetingmaybeconvenedatwhichthequorumshallbeatleastfiftypercent(50%)oftheissuedsharecapitaloftheCompany(unlessotherwisemandatorilyrequiredbyLuxembourglaw).Anyextraordinaryresolutionshallbeadoptedataquorategeneralmeeting(saveasotherwiseprovidedbymandatorylaw)atleasttwo-thirds(2/3)majorityofthevotesvalidlycastonsuchresolution.Abstentionsarenotconsideredvotes.
Appointment and Removal of Directors
Membersofourboardofdirectorsmaybeelectedbyordinaryresolutionatageneralmeetingofshareholdersatasimplemajorityvoteofshareholders.Ourarticlesofassociationprovidethatalldirectorsareelectedforaperiodofthreeyears,withtheboarddividedintothreeclassesofapproximatelyequalsize.Attheannualgeneralmeetingofshareholders,oneclassperyearwillbeelected.Anydirectormayberemovedwithorwithoutcausebyordinaryresolutionatageneralmeetingofshareholders.Ourarticlesofassociationprovidethatincaseofavacancy,theotherdirectorsshallfillsuchvacancyonaprovisionalbasis,until(i)thedecisionisratifiedor(ii)anewdirectoriselected,byanordinaryresolutionofthenextgeneralmeetingofshareholders.Thedirectorsshallbeeligibleforre-electionindefinitely.
NeitherLuxembourglawnorourarticlesofassociationcontainanyrestrictionsastothevotingofoursharesbynon-Luxembourgresidents.
Amendment to the Articles of Association
Shareholder Approval Requirements
Luxembourglawrequiresthatanamendmentofthearticlesofassociationbemadebyextraordinaryresolution,suchdecisionbeingtakenwithaqualifiedmajorityofvotes.Theagendaofthegeneralmeetingofshareholdersmustindicatetheproposedamendmentstothearticlesofassociation.
Formalities
AnyresolutionstoamendourarticlesofassociationmustbetakenbeforeaLuxembourgnotaryandsuchamendmentsmustbepublishedinaccordancewithLuxembourglaw.
Merger and De-Merger
Amergerorde-mergerbyabsorptionwherebyoneLuxembourgcompanyafteritsdissolutionwithoutliquidationtransferstoanothercompanyallofitsassetsandliabilitiesinexchangefortheissuanceofsharesintheacquiringcompanytotheshareholdersofthecompanybeingacquired,oramergerorde-mergereffectedbytransferofassetstoanewlyincorporatedcompany,must,inprinciple,beapprovedatageneralmeetingbyanextraordinaryresolutionoftheLuxembourgcompany,andthegeneralmeetingmustbeheldbeforeanotary.
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Dissolution and Liquidation
Intheeventofourdissolution,liquidation,orwinding-uptheassetsremainingafterallowingforthepaymentofallliabilitiesofthecompanywillbepaidouttotheshareholdersprorataaccordingtotheirrespectiveshareholdings.Generallythedecisionstodissolve,liquidate,orwind-uprequirethepassingofanextraordinaryresolutionatageneralmeetingofourshareholders,andsuchmeetingmustbeheldbeforeanotary.ShareholdersofaLuxembourgpubliclimitedliabilitycompanyhavetheirliabilitylimitedtothecapitalcontributioninrespectofthesharestheysubscribedandpaidorcommittedtopayfor.However,distributionofdividendsbytheCompanymaynotresultinareductionoftheCompany'snetassetvaluebelowtheamountofitscapital.
No Appraisal Rights
NeitherLuxembourglawnorourarticlesofassociationprovideforanyappraisalrightsofdissentingshareholders.
Dividend Distributions
SubjecttoLuxembourglaw,ifandwhenadividenddistributionisdeclaredbythegeneralmeetingofshareholdersortheboardofdirectorsinthecaseofinterimdividenddistributions,eachordinaryshareisentitledtoparticipateequallyinsuchdistributionoffundslegallyavailableforsuchpurposes.Pursuanttoourarticlesofassociation,thegeneralmeetingofshareholdersmayapproveadividenddistributionandtheboardofdirectorsmaydeclareaninterimdividenddistribution,totheextentpermittedbyLuxembourglaw.
Declaredandunpaiddividenddistributionsheldbyusfortheaccountoftheshareholdersshallnotbearinterest.UnderLuxembourglaw,claimsforunpaiddividenddistributionswilllapseinourfavorfiveyearsafterthedatesuchdividenddistributionwasdeclared.
Annual Accounts
UnderLuxembourglaw,theboardofdirectorsmustprepareunconsolidatedannualaccounts,i.e.,aninventoryoftheassetsandliabilitiesofTrinseoS.A.togetherwithabalancesheetandaprofitandlossaccounteachyear.Ourboardofdirectorsmustalsoannuallyprepareconsolidatedaccountsandmanagementreportsontheunconsolidatedannualaccountsandconsolidatedaccounts.Theunconsolidatedannualaccounts,theconsolidatedaccounts,themanagementreportandtheauditor'sreportsmustbeavailableforinspectionbyshareholdersuponrequestandfreeofcharge,atourregisteredofficeatleast15calendardayspriortothedateoftheannualordinarygeneralmeetingofshareholders.
Theunconsolidatedannualaccountsandtheconsolidatedaccounts,afterapprovalbytheannualordinarygeneralmeetingofshareholders,willbefiledwiththeLuxembourgRegistryofTradeandCompanies.
Information Rights
Luxembourglawgivesshareholderslimitedrightstoinspectcertaincorporaterecords15calendardayspriortothedateoftheannualordinarygeneralmeetingofshareholders,includingtheunconsolidatedannualaccountswiththelistofdirectorsandauditors,theconsolidatedaccounts,thenotestotheannualaccountsandtheconsolidatedaccounts,alistofshareholderswhosesharesarenotfullypaid-up,themanagementreportsandtheauditor'sreport.
Inaddition,anyregisteredshareholderisentitledtoreceiveacopyoftheunconsolidatedannualaccounts,theconsolidatedaccounts,theauditor'sreportsandthemanagementreportsfreeofchargepriortothedateoftheannualordinarygeneralmeetingofshareholders.
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UnderLuxembourglaw,itisgenerallyacceptedthatashareholderhastherighttoreceiveresponsesattheshareholders'generalmeetingtoquestionsconcerningitemsontheagendaofthatgeneralmeetingofshareholders,ifsuchresponsesarenecessaryorusefulforashareholdertomakeaninformeddecisionconcerningsuchagendaitem,unlessaresponsetosuchquestionscouldbedetrimentaltoourinterests.
Board of Directors
ThemanagementofTrinseoS.A.isvestedinaboardofdirectors(conseil d'administration ).Ourarticlesofassociationprovidethattheboardofdirectorsmustcompriseatleastthreemembersandnomorethantwelvemembers.
TheboardofdirectorsmeetsasoftenasCompanyinterestsrequire.
Amajorityofthemembersoftheboardpresentorrepresentedataboardmeetingconstitutesaquorum,andresolutionsareadoptedbythesimplemajorityvoteoftheboardmemberspresentorrepresented.Theboardmayalsotakedecisionsbymeansofresolutionsinwritingsignedbyalldirectors.Eachdirectorhasonevote.Thegeneralshareholders'meetingelectsdirectorsanddecidestheirrespectiveterms.Pursuanttoourarticlesofassociation,thetermofofficeofthedirectorsis3yearsbuttheymaybere-elected.Thegeneralshareholders'meetingmaydismissoneormoredirectorsatanytime,withorwithoutcausebyanordinaryresolution.Iftheboardhasavacancy,theremainingdirectorsmustfillsuchvacancyonatemporarybasispursuanttotheaffirmativevoteofamajorityoftheremainingdirectors.Thetermofatemporarydirectorelectedtofillavacancyexpiresattheendofthetermofofficeofthereplaceddirector,provided,however,thatthenextgeneralshareholders'meetingshallberequesteddefinitivelytoelectanytemporarydirector.
Withinthelimitsprovidedforbylaw,ourboardmaydelegatetooneormorepersonsthedailymanagementoftheCompanyandtheauthoritytorepresenttheCompany.
Nodirectorshall,solelyasaresultofbeingadirector,bepreventedfromcontractingwithus,eitherwithregardtohistenureinanyofficeorplaceofprofitorasvendor,purchaserorinanyothermannerwhatsoever,norshallanycontractinwhichanydirectorisinanywayinterestedbeliabletobevoidedmerelyonaccountofhispositionasdirector,norshallanydirectorwhoissointerestedbeliabletoaccounttousortheshareholdersforanyremuneration,profitorotherbenefitrealizedbythecontractbyreasonofthedirectorholdingthatofficeorofthefiduciaryrelationshiptherebyestablished.
Anydirectorhavinganinterestinatransactionsubmittedforapprovaltotheboardmayparticipateinthedeliberationsandvotethereon,unlessthetransactionisnotintheordinarycourseoftheCompany'sbusinessandthatconflictswiththeCompany'sinterest,inwhichcasethedirectorshallbeobligedtoadvisetheboardthereofpriortothevoteandtocausearecordofhisstatementtobeincludedintheminutesofthemeeting.Hemaynottakepartinthesedeliberationsnorvoteonsuchatransaction.Atthenextgeneralmeeting,beforeanyotherresolutionisputtoavote,aspecialreportshallbemadeonanytransactionsinwhichanyofthedirectorsmayhavehadaninterestthatconflictswithourinterest.
NoshareholdingqualificationfordirectorsisrequiredunderLuxembourglaw.
Ourarticlesofassociationprovidethatdirectorsandofficers,pastandpresent,areentitledtoindemnificationfromustothefullestextentpermittedbyLuxemburglawagainstliabilityandallexpensesreasonablyincurredorpaidbyhiminconnectionwithanyclaim,action,suitorproceedinginwhichheisinvolvedbyvirtueofhisbeingorhavingbeenadirectororofficerandagainstamountspaidorincurredbyhiminthesettlementthereof.Wemaypurchaseandmaintaininsuranceforanydirectororotherofficeragainstanysuchliability.
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Noindemnificationwillbeprovidedagainstanyliabilitytousorourshareholdersbyreasonofwillfulmisfeasance,badfaith,grossnegligenceorrecklessdisregardofthedutiesofadirectororofficeroranymatterastowhichanydirectororofficershallhavebeenfinallyadjudicatedtohaveactedinbadfaithandnotintheinterestoftheCompany.
Transfer Agent and Registrar
ThetransferagentandregistrarforourordinarysharesisAmericanStockTransferandTrustCompany,LLC.
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MATERIAL UNITED STATES FEDERAL INCOME AND LUXEMBOURG TAX CONSIDERATIONS
United States Federal Income Tax Considerations
Subjecttothelimitationsandqualificationsstatedherein,thisdiscussionsetsforththematerialU.S.federalincometaxconsequencesoftheownershipanddispositionbyU.S.Holders(asdefinedbelow)oftheordinaryshares.ThediscussionisbasedontheU.S.InternalRevenueCodeof1986,asamended,itslegislativehistory,existingandproposedregulationsthereunder,publishedrulingsandcourtdecisions,allascurrentlyineffectandallsubjecttochangeatanytime,possiblywithretroactiveeffect.ThissummaryappliesonlytoU.S.Holdersanddoesnotaddresstaxconsequencestoanon-U.S.Holderinvestinginourordinaryshares.
ThediscussionofaU.S.Holder'staxconsequencesaddressesonlythoseU.S.Holdersthatacquiretheirordinarysharesinthisofferingandthatholdthoseordinarysharesascapitalassetsanddoesnotaddressthetaxconsequencestoanyspecialclassofholders,includingwithoutlimitation,holders(directly,indirectlyorconstructively)of10%ormoreofourshares,dealersinsecuritiesorcurrencies,banks,tax-exemptorganizations,lifeinsurancecompanies,financialinstitutions,broker-dealers,regulatedinvestmentcompanies,realestateinvestmenttrusts,tradersinsecuritiesthatelectthemark-to-marketmethodofaccountingfortheirsecuritiesholdings,personsthatholdsecuritiesthatareahedgeorthatarehedgedagainstcurrencyorinterestraterisksorthatarepartofastraddle,conversionor"integrated"transaction,U.S.expatriates,partnershipsorotherentitiesclassifiedaspartnershipsforU.S.federalincometaxpurposesandU.S.HolderswhosefunctionalcurrencyforU.S.federalincometaxpurposesisnottheU.S.dollar.ThisdiscussiondoesnotaddresstheeffectoftheU.S.federalalternativeminimumtax,orU.S.federalestateandgifttax,oranystate,localorforeigntaxlawsonaholderofordinaryshares.
Forpurposesofthisdiscussion,a"U.S.Holder"isabeneficialownerofordinarysharesthatisforU.S.federalincometaxpurposes:(a)anindividualwhoisacitizenorresidentoftheUnitedStates;(b)acorporation(orotherentitytaxableasacorporationforU.S.federalincometaxpurposes)createdororganizedinorunderthelawsoftheUnitedStates,anystatethereofortheDistrictofColumbia;(c)anestatetheincomeofwhichissubjecttoU.S.federalincometaxationregardlessofitssource;or(d)atrust(i)ifacourtwithintheUnitedStatescanexerciseprimarysupervisionoveritsadministration,andoneormoreU.S.personshavetheauthoritytocontrolallofthesubstantialdecisionsofthattrust,or(ii)thatwasinexistenceonAugust20,1996andvalidlyelectedunderapplicableTreasuryRegulationstocontinuetobetreatedasadomestictrust.Theterm"non-U.S.Holder"meansanybeneficialownerofourordinarysharesthatisnotaU.S.Holder,apartnership(oranentityorarrangementthatistreatedasapartnershipforU.S.federalincometaxpurposes)orapersonholdingourordinarysharesthroughapartnership.
IfapartnershiporanentityorarrangementthatistreatedasapartnershipforU.S.federalincometaxpurposesholdsourordinaryshares,thetaxtreatmentofapartnerwillgenerallydependuponthestatusofthepartnerandtheactivitiesofthepartnership.Partnersinpartnershipsthatholdourordinarysharesshouldconsulttheirowntaxadvisors.
You are Urged to Consult Your Own Independent Tax Advisor Regarding the Specific U.S. Federal, State, Local and Foreign Income and OtherTax Considerations Relating to the Ownership and Disposition of Our Ordinary Shares.
Cash Dividends and Other Distributions
Asdescribedinthesectionentitled"DividendPolicy,"wehavenothistoricallymadedistributionsonourordinaryshares.Totheextentthereareanydistributionsmadewithrespecttoourordinaryshares,subjecttothepassiveforeigninvestmentcompany,or"PFIC,"rulesdiscussedbelow,aU.S.Holderofordinarysharesgenerallywillberequiredtotreatdistributionsreceivedwithrespecttosuch
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ordinaryshares(includinganyamountswithheldpursuanttoLuxembourgtaxlaw)asdividendincometotheextentofourcurrentoraccumulatedearningsandprofits(computedusingU.S.federalincometaxprinciples),withtheexcess(ifany)treatedasanon-taxablereturnofcapitaltotheextentoftheholder'sadjustedtaxbasisintheordinarysharesand,thereafter,ascapitalgain.However,wedonotmaintaincalculationsofourearningsandprofitsinaccordancewithU.S.federalincometaxaccountingprinciples.U.S.Holdersshouldthereforeassumethatanydistributionwithrespecttoourordinaryshareswillconstituteordinarydividendincome.DividendspaidontheordinaryshareswillnotbeeligibleforthedividendsreceiveddeductionallowedtoU.S.corporations.
DividendspaidtoanoncorporateU.S.Holderbya"qualifiedforeigncorporation"maybesubjecttoreducedratesoftaxationifcertainholdingperiodandotherrequirementsaremet.Aqualifiedforeigncorporationgenerallyincludesaforeigncorporation(otherthanaPFIC)if(i)itsordinarysharesarereadilytradableonanestablishedsecuritiesmarketintheUnitedStatesor(ii)itiseligibleforbenefitsunderacomprehensiveU.S.incometaxtreatythatincludesanexchangeofinformationprogram.OurordinarysharesarereadilytradableontheNewYorkStockExchange.U.S.InternalRevenueService("IRS")guidanceindicatesthatordinaryshareslistedontheNewYorkStockExchangewillbereadilytradableforpurposesofsatisfyingtheconditionsrequiredforthesereducedtaxrates.U.S.Holdersshouldconsulttheirowntaxadvisorsregardingtheavailabilityofthereducedtaxrateondividendsinlightoftheirparticularcircumstances.
DistributionspaidinacurrencyotherthanU.S.dollarswillbeincludedinaU.S.Holder'sgrossincomeinaU.S.dollaramountbasedonthespotexchangerateineffectonthedateofactualorconstructivereceipt,whetherornotthepaymentisconvertedintoU.S.dollarsatthattime.TheU.S.HolderwillhaveataxbasisinsuchcurrencyequaltosuchU.S.dollaramount,andanygainorlossrecognizeduponasubsequentsaleorconversionoftheforeigncurrencyforadifferentU.S.dollaramountwillbeU.S.sourceordinaryincomeorloss.IfthedividendisconvertedintoU.S.dollarsonthedateofreceipt,aU.S.Holdergenerallyshouldnotberequiredtorecognizeforeigncurrencygainorlossinrespectofthedividendincome.
AU.S.Holderthatpays(whetherdirectlyorthroughwithholding)LuxembourgincometaxwithrespecttodividendspaidonourordinarysharesmaybeentitledtoreceiveeitheradeductionoraforeigntaxcreditforsuchLuxembourgincometaxpaid,ormaybeentitledtoareducedrateofwithholdingundertheapplicableincometaxconventionbetweenLuxembourgandtheUnitedStates,asdescribedbelowunder"LuxembourgTaxConsiderations—WithholdingTaxonDividends."AU.S.HolderthatreceivesdividendsfromwhichLuxembourgincometaxhasbeenwithheldwillberequiredtoincludethegrossamountofthedividendinincome,whichamountmayexceedtheamountofcashreceived.Complexlimitationsapplytotheforeigntaxcredit,includingthegenerallimitationthatthecreditcannotexceedtheproportionateshareofaU.S.Holder'sU.S.federalincometaxliabilitythatsuchU.S.Holder's"foreignsource"taxableincomebearstosuchU.S.Holder'sworldwidetaxableincome.Inapplyingthislimitation,aU.S.Holder'svariousitemsofincomeanddeductionmustbeclassified,undercomplexrules,aseither"foreignsource"or"U.S.source."Inaddition,thislimitationiscalculatedseparatelywithrespecttospecificcategoriesofincome.Dividendspaidbyusgenerallywillconstitute"foreignsource"incomeandgenerallywillbecategorizedas"passivecategoryincome."However,if50%ormoreofourstockistreatedasheldbyU.S.persons,wewillbetreatedasa"UnitedStates—ownedforeigncorporation,"inwhichcasedividendsmaybetreatedforforeigntaxcreditlimitationpurposesas"foreignsource"incometotheextentattributabletoournon-U.S.sourceearningsandprofitsandas"U.S.source"incometotheextentattributabletoourU.S.sourceearningsandprofits.Becausetheforeigntaxcreditrulesarecomplex,eachU.S.Holdershouldconsultitsowntaxadvisorregardingtheforeigntaxcreditrules.
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Sale or Disposition of Ordinary Shares
AU.S.HoldergenerallywillrecognizegainorlossonthetaxablesaleorexchangeoftheordinarysharesinanamountequaltothedifferencebetweentheU.S.dollaramountrealizedonsuchsaleorexchange(determinedinthecaseofsharessoldorexchangedforcurrenciesotherthanU.S.dollarsbyreferencetothespotexchangerateineffectonthedateofthesaleorexchangeor,iftheordinarysharessoldorexchangedaretradedonanestablishedsecuritiesmarketandtheU.S.Holderisacashbasistaxpayeroranelectingaccrualbasistaxpayer,thespotexchangerateineffectonthesettlementdate)andtheU.S.Holder'sadjustedtaxbasisintheordinarysharesdeterminedinU.S.dollars.TheinitialtaxbasisoftheordinarysharestoaU.S.HolderwillbetheU.S.Holder'sU.S.dollarpurchasepricefortheshares(determinedbyreferencetothespotexchangerateineffectonthedateofthepurchase,orifthesharespurchasedaretradedonanestablishedsecuritiesmarketandtheU.S.Holderisacashbasistaxpayeroranelectingaccrualbasistaxpayer,thespotexchangerateineffectonthesettlementdate).
AssumingwearenotaPFICandhavenotbeentreatedasaPFICduringyourholdingperiodforourordinaryshares,suchgainorlosswillbecapitalgainorlossandwillbelong-termgainorlossiftheordinaryshareshavebeenheldformorethanoneyear.Undercurrentlaw,long-termcapitalgainsgenerallyareeligibleforreducedratesoftaxation.Thedeductibilityofcapitallossesissubjecttolimitations.Capitalgainorloss,ifany,recognizedbyaU.S.HoldergenerallywillbetreatedasU.S.sourceincomeorlossforU.S.foreigntaxcreditpurposes.U.S.HoldersareencouragedtoconsulttheirowntaxadvisorsregardingtheavailabilityoftheU.S.foreigntaxcreditintheirparticularcircumstances.
Medicare Contribution Tax
Inadditiontothetaxconsequencesdescribedaboveunder"CashDividendsandOtherDistributions"and"SaleorDispositionofOrdinaryShares,"certainU.S.Holdersthatareindividuals,estatesortrustsaresubjecttoanadditional3.8%Medicarecontributiontaxonthelesserof(1)theU.S.Holder's"netinvestmentincome"fortherelevanttaxableyearand(2)theexcessoftheU.S.Holder'smodifiedadjustedgrossincomeforthetaxableyearoveracertainthreshold.Forthesepurposes,"netinvestmentincome"includes,amongotherthings,dividendson,andcapitalgainsfromthesaleorotherdispositionof,stock.U.S.Holdersareadvisedtoconsulttheirowntaxadvisorsregardingthepossibleimplicationsofthisadditionaltaxinlightoftheirparticularcircumstances.
Potential Application of Passive Foreign Investment Company Provisions
WedonotcurrentlyexpecttobetreatedasaPFICforU.S.federalincometaxpurposeswithrespecttoourtaxableyearendingDecember31,2016,andwedonotexpecttobetreatedasaPFICinthefuture.However,ouractualPFICstatusforanytaxableyearwillnotbedeterminableuntilthecloseofsuchyear,and,accordingly,thereisnoguaranteethatwewillnotbeaPFICforthecurrentoranyfuturetaxableyear.Anon-U.S.corporationisconsideredtobeaPFICforanytaxableyearifeither:
• atleast75%ofitsgrossincomeispassiveincome(the"incometest");or
• atleast50%ofthevalueofitsassets(basedonanaverageofthequarterlyvaluesoftheassetsduringataxableyear)isattributabletoassetsthatproduceorareheldfortheproductionofpassiveincome(the"assettest").
Forpurposesoftheabovetests,wewillbetreatedasowningourproportionateshareoftheassetsandearningourproportionateshareoftheincomeofanyothercorporationinwhichweown,directlyorindirectly,25%ormore(byvalue)ofthecorporation'sstock.Subjecttovariousexceptions,passiveincomegenerallyincludesdividends,interest,rents,royaltiesandgainsfromthedispositionofassetsthatproduceorareheldfortheproductionofpassiveincome.
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WemustmakeaseparatedeterminationeachyearastowhetherweareaPFIC.ThedeterminationofwhetherweareaPFICismadeannuallyanddependsontheparticularfactsandcircumstances(suchasthevaluationofourassets,includinggoodwillandotherintangibleassets)andalsomaybeaffectedbytheapplicationofthePFICrules,whicharesubjecttodifferinginterpretations.Thefairmarketvalueofourassetsisexpectedtodepend,inpart,upon(a)themarketpriceofourordinaryshares,whichislikelytofluctuate,and(b)thecompositionofourincomeandassets,whichwillbeaffectedbyhow,andhowquickly,wespendanycashthatisraisedinanyfinancingtransaction.Asaresult,ourPFICstatusmaychange.IfweareaPFICforanytaxableyearduringwhichaU.S.Holderholdsordinaryshares,wegenerallywillcontinuetobetreatedasaPFICforallsucceedingyearsduringwhichsuchU.S.Holderholdstheordinaryshares.However,ifweceasetobeaPFIC,aU.S.HoldermayavoidsomeoftheadverseeffectsofthePFICregimethereafterbymakinga"deemedsale"electionwithrespecttotheordinaryshares.
IfweareorbecomeaPFICinataxableyearinwhichwepayadividendorthepriortaxableyear,thereduceddividendratediscussedabovewithrespecttodividendspaidtonon-corporateholderswouldnotapply.Inaddition,ifweareaPFICforanytaxableyearduringwhichaU.S.Holderholdsordinaryshares,theU.S.Holderwillbesubjecttospecialtaxruleswithrespecttoany"excessdistribution"thattheU.S.HolderreceivesandanygaintheU.S.Holderrealizesfromasaleorotherdisposition(includingapledgeoradeemeddisposition)oftheordinaryshares,unlesstheU.S.Holdermakesa"mark-to-market"electionasdiscussedbelow.DistributionstheU.S.Holderreceivesinataxableyearthataregreaterthan125%oftheaverageannualdistributionstheU.S.HolderreceivedduringtheshorterofthethreeprecedingtaxableyearsortheU.S.Holder'sholdingperiodfortheordinaryshareswillbetreatedasexcessdistributions.Underthesespecialtaxrules:
• theexcessdistributionorgainfromasaleorotherdispositionwillbeallocatedratablyovertheU.S.Holder'sholdingperiodfortheordinaryshares;
• theamountallocatedtothecurrenttaxableyear,andanytaxableyearpriortothefirsttaxableyearinwhichtheCompanybecameaPFIC,willbetreatedasordinaryincome;and
• theamountallocatedtoeachotheryearwillbesubjecttothehighestapplicabletaxrateineffectfortheapplicablecategoryoftaxpayerforthattaxableyearandtheinterestchargegenerallyapplicabletounderpaymentsoftaxwillbeimposedontheresultingtaxattributabletoeachsuchyear.AU.S.Holderthatisnotacorporationwillberequiredtotreatanysuchinterestas"personalinterest,"whichisnotdeductible.
Thetaxliabilityforamountsallocatedtoyearspriortotheyearofdispositionor"excessdistribution"cannotbeoffsetbyanynetoperatinglossesforsuchyears,andgains(butnotlosses)realizedonthesaleoftheordinarysharescannotbetreatedascapital,evenifyouholdtheordinarysharesascapitalassets.Specialforeigntaxcreditrulesapplywithrespecttoexcessdistributions.Pleaseconsultyourowntaxadvisorwithrespecttosuchrules.
IfweareaPFICforanytaxableyearduringwhichaU.S.Holderholdsoursharesandanyofournon-U.S.subsidiariesisalsoaPFIC,aU.S.Holderwouldbetreatedasowningaproportionateamount(byvalue)ofthesharesofthelower-tierPFICforpurposesoftheapplicationoftheserules.Underthesecircumstances,aU.S.HolderwouldbesubjecttoU.S.federalincometaxon(i)adistributiononthesharesofalower-tierPFICand(ii)adispositionofsharesofalower-tierPFIC,bothasifsuchU.S.Holderdirectlyheldthesharesofsuchlower-tierPFIC.YouareurgedtoconsultyourowntaxadvisorsabouttheapplicationofthePFICrulestoanyofoursubsidiaries.
Alternatively,incertaincircumstances,aU.S.Holderof"marketablestock"(asdefinedbelow)ofaPFICmaymakeamark-to-marketelectionwithrespecttosuchstocktoelectoutoftheexcessdistributionregimediscussedabove.IfaU.S.Holdermakesavalidmark-to-marketelectionfortheordinarysharestheU.S.Holderwillincludeinincomeeachyearanamountequaltotheexcess,ifany,
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ofthefairmarketvalueoftheordinarysharesasofthecloseoftheU.S.Holder'staxableyearovertheU.S.Holder'sadjustedbasisinsuchordinaryshares.AU.S.Holderisallowedadeductionfortheexcess,ifany,oftheadjustedbasisoftheordinarysharesovertheirfairmarketvalueasofthecloseofthetaxableyear.However,deductionsareallowableonlytotheextentofanynetmark-to-marketgainsontheordinarysharesincludedinyourincomeforpriortaxableyears.AmountsincludedintheU.S.Holder'sincomeunderamark-to-marketelection,aswellasgainontheactualsaleorotherdispositionoftheordinaryshares,aretreatedasordinaryincome.Ordinarylosstreatmentalsoappliestothedeductibleportionofanymark-to-marketlossontheordinaryshares,aswellastoanylossrealizedontheactualsaleordispositionoftheordinaryshares,totheextentthattheamountofsuchlossdoesnotexceedthenetmark-to-marketgainspreviouslyincludedforsuchordinaryshares.TheU.S.Holder'sbasisintheordinaryshareswillbeadjustedtoreflectanysuchincomeorlossamounts.IfaU.S.Holdermakessuchanelection,thetaxrulesthatapplytodistributionsbycorporationsthatarenotPFICswouldapplytodistributionsbyus,exceptthatthereducedratediscussedaboveunder"—CashDividendsandOtherDistributions"wouldnotapply.IfaU.S.Holdermakesamark-to-marketelection,itwillbeeffectiveforthetaxableyearforwhichtheelectionismadeandallsubsequenttaxableyearsunlesstheordinarysharesarenolonger"marketablestock"(asdefinedbelow)ortheIRSconsentstotherevocationoftheelection.Amark-to-marketelectionwouldnotbeavailablewithrespecttoasubsidiaryPFICofoursthataU.S.HolderisdeemedtoownforthepurposesofthePFICrules;accordingly,aU.S.HolderwouldnotbeabletomitigatecertainoftheadverseU.S."excessdistribution"federalincometaxconsequencesofitsdeemedownershipofstockinoursubsidiaryPFICsbymakingamark-to-marketelection.U.S.Holdersareurgedtoconsulttheirowntaxadvisorsabouttheavailabilityofthemark-to-marketelectionandwhethermakingtheelectionwouldbeadvisableintheirparticularcircumstances.
Asdescribedabove,themark-to-marketelectionisavailableonlyfor"marketablestock,"whichisstockthatistradedinotherthandeminimisquantitiesonatleast15daysduringeachcalendarquarter("regularlytraded")onaqualifiedexchangeorothermarket,asdefinedinapplicableU.S.Treasuryregulations.TheNewYorkStockExchangeisaqualifiedexchange.Pleaseconsultyourowntaxadvisorwithrespecttosuchrules.
U.S.HolderswhoholdordinarysharesinanyyearinwhichweareaPFICwillberequiredtofileIRSForm8621regardinganydistributionsreceivedontheordinarysharesandanygainrealizedonthedispositionofsuchsharesandanannualinformationreturn(alsoonIRSForm8621)relatingtotheirownershipofourordinaryshares.Inaddition,otherreportingrequirementsmayapply.
Incertaincircumstances,holdersofPFICsharescanavoidtherulesdescribedabovebyelectingtotreatthePFICasa"qualifiedelectingfund"underSection1295oftheCode.However,becausewedonotintendtoprepareorprovidetheinformationthatwouldenableaU.S.Holdertomakeaqualifiedelectingfundelection,thisoptionwillnotbeavailabletoU.S.Holders.
YouareurgedtoconsultyourowntaxadvisorregardingtheapplicationofthePFICrulestoyourinvestmentinourordinaryshares.
Reporting Requirements and Backup Withholding
InformationreportingtotheIRSgenerallywillberequiredwithrespecttopaymentsontheordinarysharesandproceedsofthesaleoftheordinarysharespaidwithintheUnitedStatesorthroughcertainU.S.-relatedfinancialintermediariestoholdersthatareU.S.taxpayers,otherthanexemptrecipients.A"backup"withholdingtaxmayapplytothosepaymentsifsuchaholderfailstoprovideataxpayeridentificationnumbertothepayingagentandtocertifythatnolossofexemptionfrombackupwithholdinghasoccurred(orifsuchholderotherwisefailstoestablishanexemption).Weortheapplicablepayingagentwillwithholdonadistributionifrequiredbyapplicablelaw.Theamountswithheldunderthebackupwithholdingrulesarenotanadditionaltaxandmayberefunded,orcreditedagainsttheholder'sU.S.federalincometaxliability,ifany,providedtherequiredinformationistimelyfurnishedtotheIRS.
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U.S.Holdersthatowncertain"foreignfinancialassets"(whichmayincludetheordinaryshares)arerequiredtoreportinformationrelatingtosuchassets,subjecttocertainexceptions,onIRSForm8938.Inadditiontotheserequirements,U.S.HoldersmayberequiredtoannuallyfileFinCENReport114,ReportofForeignBankandFinancialAccounts("FBAR")withtheU.S.DepartmentofTreasury.U.S.HoldersshouldconsulttheirowntaxadvisorsregardingtheapplicabilityofFBARandotherreportingrequirementsinlightoftheirindividualcircumstances.
THE ABOVE DISCUSSION DOES NOT COVER ALL TAX MATTERS THAT MAY BE OF IMPORTANCE TO A PARTICULAR INVESTOR.YOU ARE STRONGLY URGED TO CONSULT YOUR OWN TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO YOU OF ANINVESTMENT IN THE ORDINARY SHARES.
Luxembourg Tax Considerations
The following is a general overview of certain important Luxembourg tax consequences that may be or become relevant in relation to a shareholder only andis presented by way of guidance only. It does not purport to be a complete summary of tax law and practice currently applicable in Luxembourg. Any potentialinvestor should consult its own tax advisor for more information about the tax consequences of acquiring, owning and disposing of the shares as it relates to theshareholder's particular circumstances. This taxation overview does not discuss every aspect of taxation that may be relevant to a particular purchaser underspecial circumstances or who is subject to special treatment under applicable law. This overview is based on Luxembourg tax law in force and applied inLuxembourg at the date of this prospectus. The laws upon which this overview is based may change. Any such changes could apply with retroactive effect andcould affect the continued validity of this overview.
Preliminary Consideration on the Luxembourg Tax Residency of the Company's Shareholders
Ashareholderwillnotbecomearesident,norbedeemedtobearesident,ofLuxembourg,bymerelyholdingtheshares,orbytheexecution,performance,deliveryand/orenforcementoftheshares.
Withholding Tax on Dividends
Totheextentthereareanydividendspaidwithrespecttoourordinaryshares,thesedividendsarenormallysubjecttowithholdingtaxinLuxembourgatthedomesticrateof15%,unless(i)thereducedwithholdingtaxratesasprovidedforbyrelevantdoubletaxationtreatiesapplyor,(ii)theconditionstobenefitfromtheexemptionofwithholdingtaxsetoutunderarticle147LuxembourgincometaxlawofDecember4,1967("LITL")aremet:
• onthedatethedistributionismadeavailabletoashareholder,therelevantshareholderholdsorcommitstoholddirectlyorthroughataxtransparentvehicle,duringanuninterruptedperiodofatleast12months,aparticipation(a)representingatleast10%ofthesharecapitaloftheCompany,or(b)havinganacquisitioncostofatleast€1.2million;and
• thebeneficiaryofthedividendsis:
• acompany("société à caractère collectif ")residentinLuxembourgfullyliabletoLuxembourgtax;
• anEUresidentcompanywithinthemeaningofarticle2oftheEUCouncilDirective90/435/ECofJuly23,1990concerningthecommonfiscalregimeapplicabletoparentandsubsidiarycompaniesofdifferentmemberstates("theParent-SubsidiaryDirective",tobereadwiththeCircularL.I.R.No.147/1ofMarch6,2012)oritsLuxembourgpermanentestablishment;or
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• aSwisscorporationwhichisliabletoSwisscorporatetaxwithoutbenefitingfromanexemption;
• acompanysubjecttoanincometaxationcomparabletotheLuxembourgcorporateincometax(inpracticeataxrateof10.5%appliedonacomparabletaxablebasisshouldbeacceptable),whichisresidentinacountryhavingadoubletaxationtreatywithLuxembourgoritsLuxembourgpermanentestablishment;
• acorporationoracooperativecompanyresidentinanon-EuropeanUnioncountrythatismemberoftheEEAthatisfullysubjecttoanincometaxationcorrespondingtotheLuxembourgcorporateincometax;or
• apermanentestablishmentofacorporationoracooperativecompanyresidentinanon-EuropeanUnioncountrymemberoftheEEA.
Withrespecttotheapplicationofthisexemption,Luxembourgtaxauthoritiestaketheviewthatthewithholdingtaxshouldbeappliedtoanydistributionsmadetoshareholdersholdingadirectparticipationofatleast10%(orhavinganacquisitioncostofatleastof€1.2million)beforethe12monthsperiodhaselapsed.Repaymentofthiswithholdingtaxcanultimatelyberequestedbytherelevantshareholder.
Acommonanti-abuserule(the"CAAR")wasintroducedintheParent-SubsidiaryDirectiveandwasimplementedbytheEUMemberStates,includingLuxembourg,intheirnationallaweffectiveonJanuary1,2016.Underthenewlaw,dividenddistributionsdonotbenefitfromthewithholdingtaxexemptionwhen(i)thebeneficiaryisanEUresidentcompanyorapermanentestablishmentinanotherEUMemberStateofacompanyresidentinaEUMemberStateand(ii)thedistributionsaremadeintheframeworkofanarrangementwhich,havingbeenputinplacewithwhereoneofthemainpurposesisobtainingataxadvantagethatdefeatstheobjectorpurposesoftheParent-SubsidiaryDirective,andisnotgenuineinlightofalltherelevantfactsandcircumstances.Anarrangementwillnotbeconsideredgenuinetotheextentitisnotputinplaceforvalideconomicreasonswhichreflecteconomicreality.
TotheextentawithholdingtaxappliestheCompanyisresponsibleforwithholdingtaxableamounts.
Capital Decrease
Thereimbursementofsharecapital,includingsharepremium,bytheCompanyisnottreatedasadividenddistributionforLuxembourgwithholdingtaxpurposesandthusnotsubjecttoanywithholdingtax,provided(i)therearenoreservesorprofitsattheCompanylevel,and(ii)thecapitaldecreaseismotivatedbysoundbusinessreasons.IncasetheCompanydoesnothavesoundbusinessreasonstoproceedtoacapitaldecrease,theentireamountpaidwillbesubjecttoa15%withholdingtax,unlesstheconditionsforanexemptionorareductionfromthewithholdingtaxondividendssetforthabovearemet.
Arepurchaseofshareswithanimmediatecancellationofthesharesfollowsinprinciplethesametaxtreatmentasareimbursementofsharecapital.However,insuchacase,iftheshareholderceasestobeashareholder,thereimbursementwillnotbesubjecttoawithholdingtax.Incasethesharesarenotimmediatelycancelled,arepurchaseofsharesmaybetreatedforLuxembourgtaxpurposesasadividenddistribution.
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Income Taxation of Luxembourg Resident Shareholders
Luxembourg Resident Individuals
50%ofthedividendsreceivedbyresidentindividuals,whoactinthecourseofeithertheirprivatewealthortheirprofessional/businessactivities,aresubjecttoincometaxattheprogressiveordinaryrate(withthemaximumeffectivemarginaltaxratebeingat42.80%or43.60%dependingontheamountoftaxableincome).Theother50%ofthedividendsreceivedaretax-exempt.The15%withholdingtaxmaybeoffsetagainstthisincometaxliability.
Againrealizeduponthesale,disposalorredemption(however,inthecaseofapartialredemptionthetaxtreatmentappliedwillbethesameasfordividends)ofsharesbyLuxembourgresidentindividualshareholders,actinginthecourseofthemanagementoftheirprivatewealthisnotsubjecttoLuxembourgincometax,providedthissale,disposalorredemptiontookplacemorethan6monthsaftertheshareswereacquiredandprovidedthesharesdonotrepresentasubstantialshareholding.Ashareholdingisconsideredasubstantialshareholdinginlimitedcases,inparticularif(i)therelevantshareholderhasheld,eitheraloneortogetherwithitsspouseorpartnerand/oritsminorchildren,eitherdirectlyorindirectly,atanytimewithinthefiveyearsprecedingtherealizationofthegain,morethan10%ofthesharecapitaloftheCompany,or(ii)thetaxpayeracquiredfreeofcharge,withinthe5yearsprecedingthetransfer,aparticipationthatconstitutedasubstantialparticipationinthehandsofthealienator(orthealienatorsincaseofsuccessivetransfersfreeofchargewithinthesamefive-yearperiod).Capitalgainsrealizedonasubstantialparticipationmorethan6monthsaftertheacquisitionthereofaresubjecttoincometaxaccordingtothehalf-globalratemethod(i.e.,theaveragerateapplicabletothetotalincomeiscalculatedaccordingtoprogressiveincometaxratesandhalfoftheaveragerateisappliedtothecapitalgainsrealizedonthesubstantialparticipation).Adisposalmayincludeasale,anexchange,acontributionoranyotherkindofalienationoftheshareholding.Capitalgainsrealizedonthedisposalofthesharesbyresidentindividualholders,whoactinthecourseoftheirprofessionalorbusinessactivities,aresubjecttoincometaxatordinaryrates.Taxablegainsaredeterminedasbeingthedifferencebetweenthepriceforwhichtheshareshavebeendisposedofandtheloweroftheircostorbookvalue.
50%ofthedividendsreceivedbyresidentindividuals,whoactinthecourseoftheirprofessionalandbusinessactivities,aresubjecttothemunicipalbusinesstax("MBT")ataratedependingonthemunicipalitywhichvariesfrom6%to10.5%.However,forresidentindividuals,MBTisfullytaxdeductible.
Luxembourg Corporate Residents
Luxembourgresidentcorporateshareholders(société à caractère collectif )oftheCompanymustinclude50%ofthedividendsreceivedandanycapitalgainsderivedfromtheshares,intheirtaxableprofitsforLuxembourgincometaxassessmentpurposes(corporateincometax("CIT")andMBTatthemaximumaggregaterateof29.22%in2016forcorporateshareholdershavingtheirstatutoryseatinLuxembourgCity).Theother50%ofthedividendsreceivedaretaxexempt.The15%withholdingtaxmaybeoffsetagainsttheincometaxliability.Taxablegainsaredeterminedasbeingthedifferencebetweenthesale,repurchaseorredemptionpriceandthelowerofthecostorbookvalueofthesharessoldorredeemed.
However,dividendsandliquidationproceedsreceivedbyLuxembourgresidentcorporateshareholdersfromtheCompanywillbeexemptfromCITandMBTincaseofaparticipationhelddirectly,orindirectlythroughataxtransparentvehicle,representingatleast10%ofthesharecapitaloftheCompanyoranacquisitionpriceofatleast€1.2million,providedthatatthetimeoftheincomeismadeavailable,therecipienthasheldorcommitstoholdtheparticipationduringanuninterruptedperiodofatleasttwelvemonths.
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CapitalgainsrealizedupondisposalofthesharesbyaLuxembourgresidentcorporateshareholderwillbeexemptedincaseofaparticipationhelddirectly,orindirectlythroughataxtransparentvehicle,representingatleast10%ofthesharecapitaloftheCompanyoranacquisitionpriceofatleast€6million,providedthatatthetimeofthedisposal,thebeneficiaryhasheldorcommitstoholdtheparticipationduringanuninterruptedperiodofatleasttwelvemonths.
Luxembourg Residents Benefiting from a Special Tax Regime
LuxembourgresidentshareholdersoftheCompanythatareentitiesbenefitingfromaspecialtaxregime,suchas,(i)undertakingsforcollectiveinvestmentsubjecttotheamendedlawofDecember17,2010(Loi du 17 décembre 2010 concernant les sociétés de placement ),(ii)specializedinvestmentfundssubjecttotheamendedlawofFebruary13,2007(Loi du 13 février 2007 relative aux fonds d'investissement spécialisés ),or(iii)familywealthmanagementcompaniesgovernedbytheamendedlawofMay11,2007(Loi du 11 mai 2007 relative à la création une société de gestion de patrimoine familial (SPF) )aretaxexemptentitiesinLuxembourgandarethusnotsubjecttoanyLuxembourgincometax.
Income Taxation of Luxembourg Non-resident Shareholders
ShareholdersoftheCompanywhoarenon-residentsofLuxembourgandwhohaveneitherapermanentestablishmentnorapermanentrepresentativeinLuxembourgtowhichortowhomthesharesareattributable,aregenerallynotliabletoanyLuxembourgincometax.
Asanexception,anon-residentshareholdermaybeliabletoLuxembourgincometaxoncapitalgainsrealizedonthesharesifithasheld,eitheraloneortogetherwithitsspouseorpartnerand/oritsminorchildren,directlyorindirectly,atanytimewithinthefiveyearsprecedingthedisposaloftheshares,morethan10%ofthesharesoftheCompanyandithaseither(i)heldthesharesforlessthan6months,or(ii)beenaLuxembourgresidenttaxpayerformorethan15yearsandbecameanon-residentlessthanfiveyearsbeforetherealizationofthecapitalgainsontheshares.Dependingontheshareholder'sresidence,suchnon-residentshareholdersmight,however,claimtaxtreatybenefitsinordertoavoidLuxembourgtaxonanysuchcapitalgains.
Non-residentcorporateshareholdersthathaveapermanentestablishmentorapermanentrepresentativeinLuxembourgtowhichorwhomthesharesareattributable,mustincludeanyincomereceived,aswellasanygainrealizedonthesale,disposalorredemptionofshares,intheirtaxableincomeforLuxembourgtaxassessmentpurposes.Thesameinclusionappliestoindividuals,actinginthecourseofthemanagementofaprofessionalorbusinessundertaking,whohaveapermanentestablishmentorapermanentrepresentativeinLuxembourgtowhichorwhomthesharesareattributable.Taxablegainsaredeterminedasbeingthedifferencebetweenthesale,repurchase,orredemptionpriceandthelowerofthecostorbookvalueofthesharessoldorredeemed.
Net Wealth Tax
LuxembourgresidentshareholdersandshareholderswhohaveapermanentestablishmentorapermanentrepresentativeinLuxembourgtowhichorwhomthesharesareattributablearesubjecttoLuxembourgnetwealthtax("NWT")onsuchshares,exceptifsuchshareholderis(i)aresidentornon-residentindividualtaxpayer,(ii)anundertakingforcollectiveinvestmentsubjecttotheamendedlawofDecember17,2010(Loi du 17 décembre 2010 concernant les sociétés deplacement collectif ),(iii)asecuritizationcompanygovernedbytheamendedlawofMarch22,2004onsecuritization(Loi du 22 mars 2004 relative à latitrisation ),(iv)acompanygovernedbytheamendedlawofJune15,2004onventurecapitalvehicles(Loi du 15 juin 2004 relative à la Société d'investissementen capital à risque (SICAR) ),(v)aspecializedinvestmentfundgovernedbytheamendedlawofFebruary13,2007(Loi du 13 février 2007 relative aux fondsd'investissement spécialisés ),(vi)afamilywealthmanagementcompanygovernedbytheamendedlawofMay11,2007(Loi du 11 mai 2007 relative à lacréation d'une
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société de gestion de patrimoine familial (SPF) ),or(vii)aresidentcorporateshareholderwhoholdsaparticipationdirectly,orindirectlythroughataxtransparentvehicle,representingatleast10%ofthesharecapitaloftheCompanyoranacquisitionpriceofatleast€1.2million.However,iftheshareholderisavehiclelistedaboveunder(iii),(iv)or(vii),asfrom1January2016,itmightbesubject(a)toaminimumnetwealthtaxofEUR3,210,ifitholdsassetssuchasfixedfinancialassets,receivablesowedtoaffiliatedcompanies,transferablesecurities,postalcheckingaccounts,checksandcash,inaproportionthatexceeds90%ofitstotalbalancesheetvalueandifthetotalbalancesheetvalueexceedsEUR350,000or(b)toaminimumnetwealthtaxbetweenEUR535andEUR32,100basedonthetotalamountofitsassets.
Other Taxes
NoLuxembourgvalueaddedtax,Luxembourgregistrationduties,orsimilartaxesareleviedonthetransferoftheshares.
NoestateorinheritancetaxisleviedonthetransferofthesharesupondeathofashareholderoftheCompanyincaseswherethedeceasedwasnotaresidentofLuxembourgforinheritancetaxpurposes.
LuxembourgtaxmaybeleviedonagiftordonationofthesharesifembodiedinaLuxembourgnotarialdeedorotherwiseregisteredinLuxembourg.WhereashareholderisaresidentofLuxembourgfortaxpurposesatthetimeofhisdeath,thesharesareincludedinitstaxableestateforinheritancetaxorestatetaxpurposes.
Foreign Account Tax Compliance Act (FATCA) Requirements
FATCArequiresfinancialinstitutionstoreportonanannualbasistotheIRScertaininformationonU.S.personsthatholdaccountsoutsidetheU.S.,asasafeguardagainstU.S.taxevasion.Inaddition,FATCAgenerallyimposesa30%withholdingtaxoncertainU.S.sourcepayments(includingdividendsandgrossproceedsfromthesaleorotherdisposalofpropertythatcanproduceU.S.sourceincome)whenmadetoanindividualorentitythatdoesnotcomplywithFATCAprovisions.UnderapplicableU.S.TreasuryRegulations,withholdingpursuanttoFATCAwithrespecttogrossproceedswillapplyonlyafterJanuary1,2019.The30%withholdingcouldalsoapplytopaymentsotherwiseattributabletoU.S.sourceincome(alsoknownas"foreignpass-throughpayments").
OnMarch28,2014,theU.S.andtheGrandDuchyofLuxembourgsignedanintergovernmentalagreement(IGA)intheformofModel1,whichrequiresLuxembourgfinancialinstitutionstoreportallFATCA-relatedinformationtotheirowngovernmentalagencies,whichwouldthenreportsuchinformationtotheIRS.TheIGAhasbeenimplementedinLuxembourgbyalawdatedJuly24,2015.
InvestorsshouldconsulttheirowntaxadvisorsregardingtheFATCArequirementswithrespecttotheirownsituationontheirinvestmentintheCompany.Inparticular,investorswhoholdtheirinvestmentthroughintermediariesshouldconfirmtheFATCAcompliancestatusofthoseintermediariestoensurethattheydonotsufferU.S.withholdingtaxontheirinvestmentreturns.
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SELLING SHAREHOLDER
ThefollowingtablesetsforthinformationregardingthebeneficialownershipofourordinarysharesasofMay1,2016,andasadjustedtogiveeffecttotheofferingbythesellingshareholder.
Thepercentageofbeneficialownershipiscalculatedbasedon47,140,870ordinarysharesoutstandingasofMay1,2016,excludingtreasuryshares,andthenumberofunissuedsharesastowhichsuchsellingshareholderhastherighttoacquirevotingand/orinvestmentpowerwithin60days.Thebeneficialownershipinformationsetforthbelowwasprovidedbyoronbehalfofthesellingshareholder,andwehavenotindependentlyverifiedtheaccuracyorcompletenessoftheinformationsoprovided.
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Shares Owned Before the Offering
Shares Owned After the Offering
Shares Offered Hereby
Name of Selling Shareholder Number Percentage Number Percentage BainCapitalEverestManagerHoldingSCA(1) 26,669,567 56.6% 8,000,000 18,669,567 39.6%
(1) ThegeneralpartnerofourParentisBainCapitalEverestManagerS.à.r.l.("BCEM").Byvirtueoftherelationshipsdescribedinthisfootnote,BCEMmaybedeemedtoexercisevotinganddispositivepowerwithrespecttothesharesheldbyParent.MichelG.Plantevin,AurélienVasseur,ChristopherD.Pappas,StephenThomas,FelixHauser,andStephenM.ZideareeachmanagersofBCEM.ThemanagersofBCEMdisclaimbeneficialownershipofsuchsharestotheextentattributedtothemsolelybyvirtueofservingasamanagerofBCEM.AlloftheoutstandingsharecapitalofBCEMisheldbyBainCapitalEuropeFundIII,L.P.("EuropeFundIII")and,inthatcapacity,EuropeFundIIIhasthepowertoappointthemanagersofBCEM.BainCapitalInvestors,LLC("BCI")isthegeneralpartnerofBainCapitalPartnersEuropeIII,L.P.,whichisthegeneralpartnerofEuropeFundIII.Asaresultoftherelationshipsdescribedabove,BCImaybedeemedtosharebeneficialownershipofthesharesheldbyourParent.Thegovernance,investmentstrategyanddecision-makingprocesswithrespecttoinvestmentsheldbyEuropeFundIIIisdirectedbyBCI'sGlobalPrivateEquityBoard("GPEB"),whichiscomprisedofthefollowingindividuals:StevenBarnes,JoshuaBekenstein,JohnConnaughton,DavidGross-Loh,StephenPagliuca,MichelG.Plantevin,DwightPoler,andJonathanZhu.Byvirtueoftherelationshipsdescribedinthisfootnote,GPEBmaybedeemedtoexercisevotinganddispositivepowerwithrespecttothesharesheldbyourParent.EachofthemembersofGPEBdisclaimsbeneficialownershipofsuchsharestotheextentattributedtosuchmembersolelybyvirtueofservingonGPEB.TheaddressforourParentandBCEMis4,rueLouHemmer,L-1748Luxembourg,GrandDuchyofLuxembourg.EuropeFundIIIhasanaddressofUglandHouse,SouthChurchStreet,GeorgeTown,GrandCayman,KY1-1104CaymanIslandsandBCIhasanaddressc/oBainCapitalPrivateEquity,LP,200ClarendonStreet,Boston,Massachusetts02116.TheaddressofMr.Hauserisc/oBainCapitalBeteiligungsberatungGmbHMaximilianstrasse11,80539Munich,Germany.
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UNDERWRITING
TheCompany,thesellingshareholderandGoldman,Sachs&Co.,astheunderwriter,haveenteredintoanunderwritingagreementwithrespecttotheordinarysharesofferedhereby.Subjecttocertainconditions,theunderwriterhasagreedtopurchase8,000,000ordinarysharesfromthesellingshareholder.
Theunderwriteriscommittedtotakeandpayforalloftheordinaryshares,ifanyaretaken.
Thefollowingtableshowsthepershareandtotalunderwritingdiscountsandcommissionstobepaidtotheunderwriterbythesellingshareholder.
Theexpensesoftheoffering,notincludingtheunderwritingdiscount,areestimatedatapproximately$350,000andarepayablebyus.Thesellingshareholderwillnotpayanyofferingexpenses(otherthantheunderwritingdiscounts).WehaveagreedwiththeunderwritertopayactualaccountablelegalfeesandfilingfeesandotherreasonabledisbursementsofcounseltotheunderwriterrelatingtothereviewandqualificationofthisofferingbytheFinancialIndustryRegulatoryAuthority,Inc.inanaggregateamountnottoexceed$30,000.
Thesharessoldbytheunderwritertothepublicwillinitiallybeofferedatthepublicofferingpricesetforthonthecoverofthisprospectussupplement.Anysharessoldbytheunderwritertosecuritiesdealersmaybesoldatadiscountofupto$0.20persharefromthepublicofferingprice.Aftertheinitialofferingoftheshares,theunderwritermaychangetheofferingpriceandtheothersellingterms.Theofferingofthesharesbytheunderwriterissubjecttoreceiptandacceptanceandsubjecttotheunderwriter'srighttorejectanyorderinwholeorinpart.
Inconnectionwiththisoffering,we,eachofourdirectorsandexecutiveofficersandthesellingshareholderhaveagreed,subjecttocertainexceptions,that,foraperiodof30daysafterthedateofthisprospectussupplement,weandtheywillnot,withoutthepriorwrittenconsentofGoldman,Sachs&Co.,directlyorindirectlyissue,sell,offer,pledgeorcontracttosell,grantanyoption,rightorwarrantforthesaleof,lendorotherwisetransferordisposeof,anyordinaryshares(otherthanthesharesofferedpursuanttothisoffering)oranysecuritiesconvertibleinto,orexercisableorexchangeablefor,ordinaryshares,includingthefiling(orparticipationinthefiling)ofaregistrationstatementwiththeSECinrespectof,ortheestablishmentorincreaseofaputequivalentpositionortheliquidationordecreaseofacallequivalentpositionwithinthemeaningofSection16oftheExchangeActwithrespectto,anyordinarysharesoranysecuritiesconvertibleinto,orexercisableorexchangeablefor,ordinaryshares;orpubliclyannounceanintentiontoeffectanysuchtransaction.
OurordinarysharesarelistedontheNYSEunderthesymbol"TSE."
Inconnectionwiththeoffering,theunderwritermaypurchaseandsellsharesintheopenmarket.Thesetransactionsmayincludeshortsales,stabilizingtransactionsandpurchasestocoverpositionscreatedbyshortsales.Shortsalesinvolvethesalebytheunderwriterofagreaternumberofsharesthanitisrequiredtopurchaseintheoffering,andashortpositionrepresentstheamountofsuchsalesthathavenotbeencoveredbysubsequentpurchases.Theunderwritermaycoveranycoveredshortpositionbypurchasingsharesintheopenmarket.Stabilizingtransactionsconsistofvariousbidsfororpurchasesofsharesmadebytheunderwriterintheopenmarketpriortothecompletionoftheoffering.
Purchasestocoverashortpositionandstabilizingtransactions,aswellasotherpurchasesbytheunderwriterforitsownaccounts,mayhavetheeffectofpreventingorretardingadeclineinthemarketpriceofthesharesand,maystabilize,togetherwiththeimpositionofthepenaltybid,maintainor
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PerShare $ 0.40Total $ 3,200,000
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otherwiseaffectthemarketpriceoftheshares.Asaresult,thepriceofthesharesmaybehigherthanthepricethatotherwisemightexistintheopenmarket.Theunderwriterisnotrequiredtoengageintheseactivitiesandmayendanyoftheseactivitiesatanytime.ThesetransactionsmaybeeffectedonNYSE,intheover-the-countermarketorotherwise.
Aprospectusinelectronicformatmaybemadeavailableonthewebsitesmaintainedbytheunderwriter.Theunderwritermayagreetoallocateanumberofourordinarysharesforsaletoitsonlinebrokerageaccountholders.TheunderwritermaymakeInternetdistributionsonthesamebasisasotherallocations.Inaddition,ourordinarysharesmaybesoldbytheunderwritertosecuritiesdealerswhoresellsuchsharestoonlinebrokerageaccountholders.Otherthantheprospectusinelectronicformat,theinformationontheunderwriter'sorthesellingshareholder'swebsiteandanyinformationcontainedinanyotherwebsitemaintainedbytheunderwriterisnotpartoftheprospectusortheregistrationstatementofwhichthisprospectussupplementformsapart,hasnotbeenapprovedorendorsedbyusortheunderwriterorthesellingshareholderinitscapacityasunderwriterorthesellingshareholderandshouldnotberelieduponbyinvestors.
Theunderwriteranditsaffiliateshaveengagedin,andmayinthefutureengagein,investmentbankingandothercommercialdealingsintheordinarycourseofbusinesswithusorouraffiliates.Theyhavereceived,ormayinthefuturereceive,customaryfeesandcommissionsforthesetransactions.
Inaddition,intheordinarycourseoftheirbusinessactivities,theunderwriteranditsaffiliatesmaymakeorholdabroadarrayofinvestmentsandactivelytradedebtandequitysecurities(orrelatedderivativesecurities)andfinancialinstruments(includingbankloans)fortheirownaccountandfortheaccountsoftheircustomers.Suchinvestmentsandsecuritiesactivitiesmayinvolvesecuritiesand/orinstrumentsofoursorouraffiliates.Theunderwriteranditsaffiliatesmayalsomakeinvestmentrecommendationsand/orpublishorexpressindependentresearchviewsinrespectofsuchsecuritiesorfinancialinstrumentsandmayhold,orrecommendtoclientsthattheyacquire,longand/orshortpositionsinsuchsecuritiesandinstruments.
OtherthanintheUnitedStates,noactionhasbeentakenbyusortheunderwriterthatwouldpermitapublicofferingoftheordinarysharesofferedbythisprospectussupplementinanyjurisdictionwhereactionforthatpurposeisrequired.Ordinarysharesofferedbythisprospectussupplementmaynotbeofferedorsold,directlyorindirectly,normaythisprospectussupplementoranyotherofferingmaterialoradvertisementsinconnectionwiththeofferandsaleofanysuchordinarysharesbedistributedorpublishedinanyjurisdiction,exceptundercircumstancesthatwillresultincompliancewiththeapplicablerulesandregulationsofthatjurisdiction.Personsintowhosepossessionthisprospectussupplementcomesareadvisedtoinformthemselvesaboutandtoobserveanyrestrictionsrelatingtothisofferingandthedistributionofthisprospectussupplement.Thisprospectussupplementdoesnotconstituteanoffertosellorasolicitationofanoffertobuyanyordinarysharesofferedbythisprospectussupplementinanyjurisdictioninwhichsuchanofferorasolicitationisunlawful.
Canada
Theordinarysharesofferedherebymaybesoldonlytopurchaserspurchasing,ordeemedtobepurchasing,asprincipalthatareaccreditedinvestors,asdefinedinNationalInstrument45-106ProspectusExemptionsorsubsection73.3(1)oftheSecuritiesAct(Ontario),andarepermittedclients,asdefinedinNationalInstrument31-103RegistrationRequirements,ExemptionsandOngoingRegistrantObligations.Anyresaleoftheordinarysharesofferedherebymustbemadeinaccordancewithanexemptionfrom,orinatransactionnotsubjectto,theprospectusrequirementsofapplicablesecuritieslaws.
SecuritieslegislationincertainprovincesorterritoriesofCanadamayprovideapurchaserwithremediesforrescissionordamagesifthisprospectussupplement(includinganyamendmentthereto)containsamisrepresentation,providedthattheremediesforrescissionordamagesareexercisedbythe
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purchaserwithinthetimelimitprescribedbythesecuritieslegislationofthepurchaser'sprovinceorterritory.Thepurchasershouldrefertoanyapplicableprovisionsofthesecuritieslegislationofthepurchaser'sprovinceorterritoryforparticularsoftheserightsorconsultwithalegaladvisor.
Pursuanttosection3A.3ofNationalInstrument33-105UnderwritingConflicts(NI33-105),theunderwriterisnotrequiredtocomplywiththedisclosurerequirementsofNI33-105regardingunderwriterconflictsofinterestinconnectionwiththisoffering.
European Economic Area
InrelationtoeachMemberStateoftheEuropeanEconomicAreawhichhasimplementedtheProspectusDirective(each,a"RelevantMemberState"),theunderwriterhasrepresentedandagreedthatwitheffectfromandincludingthedateonwhichtheProspectusDirectiveisimplementedinthatRelevantMemberState(the"RelevantImplementationDate")ithasnotmadeandwillnotmakeanofferofsharestothepublicinthatRelevantMemberStatepriortothepublicationofaprospectusinrelationtotheshareswhichhasbeenapprovedbythecompetentauthorityinthatRelevantMemberStateor,whereappropriate,approvedinanotherRelevantMemberStateandnotifiedtothecompetentauthorityinthatRelevantMemberState,allinaccordancewiththeProspectusDirective,exceptthatitmay,witheffectfromandincludingtheRelevantImplementationDate,makeanofferofsharestothepublicinthatRelevantMemberStateatanytime:
(a)toanylegalentitywhichisaqualifiedinvestorasdefinedintheProspectusDirective;
(b)tofewerthan100or,iftheRelevantMemberStatehasimplementedtherelevantprovisionofthe2010PDAmendingDirective,150naturalorlegalpersons(otherthanqualifiedinvestors,asdefinedintheProspectusDirective)subjecttoobtainingthepriorconsentoftherepresentativesforanysuchoffer;or
(c)inanyothercircumstanceswhichdonotrequirethepublicationbyusofaprospectuspursuanttoArticle3oftheProspectusDirective.
Forthepurposesofthisprovision,theexpressionan"offerofsharestothepublic"inrelationtoanysharesinanyRelevantMemberStatemeansthecommunicationinanyformandbyanymeansofsufficientinformationonthetermsfortheofferandthesharestobeofferedsoastoenableaninvestortodecidetopurchaseorsubscribetheshares,asthesamemaybevariedinthatRelevantMemberStatebyanymeasureimplementingtheProspectusDirectiveinthatRelevantMemberState,theexpressionProspectusDirectivemeansDirective2003/71/EC(andamendmentsthereto,includingthePD2010AmendingDirectivetotheextentimplementedintheRelevantMemberState)andincludesanyrelevantimplementingmeasureineachRelevantMemberState,andtheexpression2010PDAmendingDirectivemeansDirective2010/73/EU.
United Kingdom
Thisprospectusandanyothermaterialinrelationtothesharesdescribedhereinisonlybeingdistributedto,andisonlydirectedat,personsintheUnitedKingdomthatarequalifiedinvestorswithinthemeaningofArticle2(1)(e)oftheProspectiveDirective("qualifiedinvestors")thatalso(i)haveprofessionalexperienceinmattersrelatingtoinvestmentsfallingwithinArticle19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005,asamended,ortheOrder,(ii)whofallwithinArticle49(2)(a)to(d)oftheOrderor(iii)towhomitmayotherwiselawfullybecommunicated(allsuchpersonstogetherbeingreferredtoas"relevantpersons").Thesharesareonlyavailableto,andanyinvitation,offeroragreementtopurchaseorotherwiseacquiresuchshareswillbeengagedinonlywith,relevantpersons.Thisprospectusanditscontentsareconfidentialandshouldnotbedistributed,publishedorreproduced(inwholeorinpart)ordisclosedbyrecipientstoanyother
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personintheUnitedKingdom.AnypersonintheUnitedKingdomthatisnotarelevantpersonshouldnotactorrelyonthisprospectusoranyofitscontents.
Switzerland
ThesharesmaynotbepubliclyofferedinSwitzerlandandwillnotbelistedontheSIXSwissExchange(the"SIX")oronanyotherstockexchangeorregulatedtradingfacilityinSwitzerland.Thisdocumenthasbeenpreparedwithoutregardtothedisclosurestandardsforissuanceprospectusesunderart.652aorart.1156oftheSwissCodeofObligationsorthedisclosurestandardsforlistingprospectusesunderart.27ff.oftheSIXListingRulesorthelistingrulesofanyotherstockexchangeorregulatedtradingfacilityinSwitzerland.NeitherthisdocumentnoranyotherofferingormarketingmaterialrelatingtothesharesortheofferingmaybepubliclydistributedorotherwisemadepubliclyavailableinSwitzerland.
Neitherthisprospectusnoranyotherofferingormarketingmaterialrelatingtotheoffering,theissuer,ortheshareshavebeenorwillbefiledwithorapprovedbyanySwissregulatoryauthority.Inparticular,thisprospectuswillnotbefiledwith,andtheofferofshareswillnotbesupervisedby,theSwissFinancialMarketSupervisoryAuthorityFINMA(the"FINMA"),andtheofferofshareshasnotbeenandwillnotbeauthorizedundertheSwissFederalActonCollectiveInvestmentSchemes(the"CISA").TheinvestorprotectionaffordedtoacquirersofinterestsincollectiveinvestmentschemesundertheCISAdoesnotextendtoacquirersofshares.
The Dubai International Financial Center
ThisprospectusrelatestoanExemptOfferinaccordancewiththeOfferedSecuritiesRulesoftheDubaiFinancialServicesAuthority(the"DFSA").ThisprospectusisintendedfordistributiononlytopersonsofatypespecifiedintheOfferedSecuritiesRulesoftheDFSA.Itmustnotbedeliveredto,orreliedonby,anyotherperson.TheDFSAhasnoresponsibilityforreviewingorverifyinganydocumentsinconnectionwithExemptOffers.TheDFSAhasnotapprovedthisprospectusnortakenstepstoverifytheinformationsetforthhereinandhasnoresponsibilityforthisprospectus.Thesharestowhichthisprospectusrelatesmaybeilliquidand/orsubjecttorestrictionsontheirresale.Prospectivepurchasersofthesharesofferedshouldconducttheirownduediligenceontheshares.Ifyoudonotunderstandthecontentsofthisprospectusyoushouldconsultanauthorizedfinancialadvisor.
Hong Kong
Thesharesmaynotbeofferedorsoldbymeansofanydocumentotherthan(i)incircumstanceswhichdonotconstituteanoffertothepublicwithinthemeaningoftheCompaniesOrdinance(Cap.32,LawsofHongKong),or(ii)to"professionalinvestors"withinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.571,LawsofHongKong)andanyrulesmadethereunder,or(iii)inothercircumstanceswhichdonotresultinthedocumentbeinga"prospectus"withinthemeaningoftheCompaniesOrdinance(Cap.32,LawsofHongKong),andnoadvertisement,invitationordocumentrelatingtothesharesmaybeissuedormaybeinthepossessionofanypersonforthepurposeofissue(ineachcasewhetherinHongKongorelsewhere),whichisdirectedat,orthecontentsofwhicharelikelytobeaccessedorreadby,thepublicinHongKong(exceptifpermittedtodosounderthelawsofHongKong)otherthanwithrespecttoshareswhichareorareintendedtobedisposedofonlytopersonsoutsideHongKongoronlyto"professionalinvestors"withinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.571,LawsofHongKong)andanyrulesmadethereunder.
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Singapore
ThisprospectushasnotbeenregisteredasaprospectuswiththeMonetaryAuthorityofSingapore.Accordingly,thisprospectusandanyotherdocumentormaterialinconnectionwiththeofferorsale,orinvitationforsubscriptionorpurchase,ofthesharesmaynotbecirculatedordistributed,normaythesharesbeofferedorsold,orbemadethesubjectofaninvitationforsubscriptionorpurchase,whetherdirectlyorindirectly,topersonsinSingaporeotherthan(i)toaninstitutionalinvestorunderSection274oftheSecuritiesandFuturesAct,Chapter289ofSingapore(the"SFA"),(ii)toarelevantperson,oranypersonpursuanttoSection275(1A),andinaccordancewiththeconditions,specifiedinSection275oftheSFAor(iii)otherwisepursuantto,andinaccordancewiththeconditionsof,anyotherapplicableprovisionoftheSFA.
WherethesharesaresubscribedorpurchasedunderSection275byarelevantpersonwhichis:(a)acorporation(whichisnotanaccreditedinvestor)thesolebusinessofwhichistoholdinvestmentsandtheentiresharecapitalofwhichisownedbyoneormoreindividuals,eachofwhomisanaccreditedinvestor;or(b)atrust(wherethetrusteeisnotanaccreditedinvestor)whosesolepurposeistoholdinvestmentsandeachbeneficiaryisanaccreditedinvestor,shares,debenturesandunitsofsharesanddebenturesofthatcorporationorthebeneficiaries'rightsandinterestinthattrustshallnotbetransferableforsixmonthsafterthatcorporationorthattrusthasacquiredthesharesunderSection275except:(1)toaninstitutionalinvestorunderSection274oftheSFAortoarelevantperson,oranypersonpursuanttoSection275(1A),andinaccordancewiththeconditions,specifiedinSection275oftheSFA;(2)wherenoconsiderationisgivenforthetransfer;or(3)byoperationoflaw.
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LEGAL MATTERS
CertainlegalmattersinconnectionwiththisofferingwillbepasseduponforusbyRopes&GrayLLP,Boston,Massachusetts.Ropes&GrayLLPandsomeofitsattorneysarelimitedpartnersofRGIP,LP,whichisaninvestorincertaininvestmentfundsadvisedormanagedbyBainCapitalPrivateEquity,LPandoftenaco-investorwithsuchfunds.RGIP,LPindirectlyownslessthan1%ofouroutstandingordinaryshares.ThevalidityoftheissuanceofordinarysharestobesoldinthisofferingwillbepasseduponforusbyLoyens&LoeffLuxembourgS.à.r.l.,Luxembourg.CahillGordon&ReindelLLP,NewYork,NewYorkisactingascounseltotheunderwriter.
EXPERTS
TheauditedfinancialstatementsofTrinseoS.A.incorporatedinthisprospectussupplementbyreferencetotheAnnualReportonForm10-KfortheyearendedDecember31,2015,exceptastheyrelatetoAmericasStyrenicsLLC,andtheeffectivenessofinternalcontroloverfinancialreportingasofDecember31,2015havebeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm.Suchfinancialstatements,exceptastheyrelatetoAmericasStyrenicsLLC,andmanagement'sassessmentoftheeffectivenessofinternalcontroloverfinancialreportinghavebeensoincorporatedinrelianceonthereportofsuchindependentregisteredpublicaccountingfirmgivenontheauthorityofsaidfirmasexpertsinauditingandaccounting.
TheconsolidatedfinancialstatementsofAmericasStyrenicsLLC,incorporatedinthisprospectussupplementbyreferencefromTrinseoS.A.'sAnnualReportonForm10-KfortheyearendedDecember31,2015,havebeenauditedbyDeloitte&ToucheLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreport,whichisincorporatedhereinbyreference.Suchfinancialstatementshavebeensoincorporatedinrelianceuponthereportofsuchfirmgivenupontheirauthorityasexpertsinaccountingandauditing.
WHERE YOU CAN FIND MORE INFORMATION
WehavefiledwiththeSECaregistrationstatementonFormS-3undertheSecuritiesActwithrespectourordinarysharesbeingofferedbythisprospectussupplementandtheaccompanyingprospectus.Thisprospectussupplementandtheaccompanyingprospectusdonotcontainalloftheinformationsetforthintheregistrationstatement.Forfurtherinformationwithrespecttousandtheordinaryshares,referenceismadetotheregistrationstatementanditsexhibits.Statementscontainedinthisprospectussupplementortheaccompanyingprospectusastothecontentsofanycontractorotherdocumentarenotnecessarilycomplete.Wearerequiredtofileannualandquarterlyreports,specialreports,proxystatements,andotherinformationwiththeSEC.Theregistrationstatement,suchreportsandotherinformationcanbeinspectedandcopiedatthePublicReferenceRoomoftheSEClocatedat100FStreet,N.E.,Washington,D.C.20549.Copiesofsuchmaterials,includingcopiesofalloranyportionoftheregistrationstatement,canbeobtainedfromthePublicReferenceRoomoftheSECatprescribedrates.YoucancalltheSECat1-800-SEC-0330toobtaininformationontheoperationofthePublicReferenceRoom.SuchmaterialsmayalsobeaccessedelectronicallybymeansoftheSEC'swebsiteatwww.sec.gov .
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
TheSECallowsusto"incorporatebyreference"intothisprospectussupplementandtheaccompanyingprospectusinformationwefilewithit,whichmeansthatwecandiscloseimportantinformationtoyoubyreferringyoutothosedocuments.Theinformationincorporatedbyreferenceisconsideredtobepartofthisprospectussupplementandtheaccompanyingprospectus,andinformationindocumentsthatwefilelaterwiththeSECwillautomaticallyupdateandsupersedeinformationinthisprospectussupplement.Weincorporatebyreferenceintothisprospectussupplementandthe
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TableofContents
accompanyingprospectusthedocumentslistedbelowandanyfuturefilingsmadebyuswiththeSECunderSection13(a),13(c),14or15(d)oftheExchangeAct,except,ineachcase,forinformation"furnished"underItems2.02,7.01or9.01onForm8-Korotherinformation"furnished"totheSECwhichisnotdeemedfiledandnotincorporatedinthisprospectussupplementortheaccompanyingprospectus,untiltheterminationofthisoffering.Weherebyincorporatebyreferencethefollowingdocuments:
• OurannualreportonForm10-KfortheyearendedDecember31,2015,filedwiththeSEConMarch11,2016(FileNo.001-36473),andasamendedonMarch15,2016;
• OurquarterlyreportonForm10-QforthequarterendedMarch31,2016,filedwiththeSEConMay5,2016(FileNo.001-36473);
• OurcurrentreportsonForm8-KfiledwiththeSEConJanuary26,2016,February26,2016,March24,2016,andApril5,2016;and
• ThedescriptionofourordinarysharescontainedintheRegistrationStatementonForm8-A,asfiledwiththeSEConJune2,2014(FileNo.001-36473).
Youmayrequestacopyofthesefilings,atnocost,bywritingortelephoningusatthefollowingaddress:
TrinseoS.A.Attn:CorporateSecretary
1000ChesterbrookBoulevardSuite300
Berwyn,PA19312(610)240-3200
Copiesofthesefilingsarealsoavailable,withoutcharge,ontheSEC'swebsiteatwww.sec.gov andonourwebsite,www.trinseo.com,assoonasreasonablypracticableaftertheyarefiledelectronicallywiththeSEC.Theinformationcontainedonourwebsiteisnotapartofthisprospectussupplementortheaccompanyingprospectus.
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Trinseo S.A.37,269,567 Ordinary Shares
Thesellingshareholderidentifiedinthisprospectusmayofferandsellfromtimetotime,inoneormoreseriesorissuancesandontermsthatwillbedeterminedatthetimeoftheoffering,37,269,567ordinarysharesofTrinseoS.A.Wewillnotreceiveanyproceedsfromthesaleofsharesbythesellingshareholder.
Wewillprovidespecifictermsofanyofferinginasupplementtothisprospectus.Anyprospectussupplementmayalsoadd,update,orchangeinformationcontainedinthisprospectus.Youshouldcarefullyreadthisprospectusandtheapplicableprospectussupplementaswellasthedocumentsincorporatedordeemedtobeincorporatedbyreferenceinthisprospectusandtheapplicableprospectussupplementbeforeyoupurchaseanyofthesecuritiesofferedhereby.
OurordinarysharesarelistedontheNewYorkStockExchangeunderthesymbol"TSE."OnMarch14,2016,thelastsalepriceofourordinarysharesasreportedontheNewYorkStockExchangewas$34.67pershare.
Investing in our ordinary shares involves substantial risks. See "Risk Factors" beginning on page 3 of this prospectus toread about factors you should consider before buying our ordinary shares.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed onthe accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
ProspectusdatedMarch15,2016
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TABLE OF CONTENTS
Wehavenotauthorizedanyonetoprovideanyinformationortomakeanyrepresentationsotherthanthosecontainedorincorporatedbyreferenceinthisprospectus,anyaccompanyingprospectussupplementorinanyfreewritingprospectuseswehaveprepared.Wetakenoresponsibilityfor,andcanprovidenoassuranceastothereliabilityof,anyotherinformationthatothersmaygiveyou.Thisprospectusandanyaccompanyingprospectussupplementareanoffertosellonlythesharesofferedhereby,butonlyundercircumstancesandinjurisdictionswhereitislawfultodoso.Theinformationcontainedorincorporatedbyreferenceinthisprospectusandanyaccompanyingprospectussupplementiscurrentonlyasofthedateoftheapplicabledocument.
AboutthisProspectus 1AboutTrinseoS.A. 2RiskFactors 3CautionaryNoteRegardingForward-LookingStatements 4UseofProceeds 6SellingShareholder 6PlanofDistribution 7LegalMatters 9Experts 9WhereYouCanFindMoreInformation 9IncorporationofCertainInformationbyReference 9
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ABOUT THIS PROSPECTUS
ThisprospectusispartofaregistrationstatementonFormS-3thatwefiledwiththeSecuritiesandExchangeCommission(the"SEC")undertheSecuritiesActof1933,asamended("SecuritiesAct"),usinga"shelf"registrationprocess.Underthisshelfregistrationprocess,thesellingshareholdermay,onacontinuousbasis,inoneormoreofferings,sellorotherwisedisposeofupto37,269,567ordinaryshares.Thisprospectusincorporatesbyreferenceimportantbusinessandfinancialinformationaboutusthatisnotincludedinordeliveredwiththisdocument.Youshouldreadtheadditionalinformationdescribedunder"WhereYouCanFindMoreInformation"and"IncorporationofCertainInformationbyReference."
Wewillnotreceiveanyproceedsfromthesaleorotherdispositionoftheordinarysharesregisteredhereunder.
Wehavenotauthorizedanydealer,agentorotherpersontogiveanyinformationortomakeanyrepresentationotherthanthosecontainedorincorporatedbyreferenceinthisprospectus.Thisprospectusdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanysecuritiesotherthantheregisteredsecuritiestowhichtheyrelate,nordoesthisprospectusconstituteanoffertosellorthesolicitationofanoffertobuysecuritiesinanyjurisdictiontoanypersontowhomitisunlawfultomakesuchofferorsolicitationinsuchjurisdiction.Youshouldnotassumethattheinformationcontainedinthisprospectusisaccurateonanydatesubsequenttothedatesetforthonthefrontofthedocumentorthatanyinformationwehaveincorporatedbyreferenceiscorrectonanydatesubsequenttothedateofthedocumentincorporatedbyreference,eventhoughthisprospectusandanyaccompanyingprospectussupplementisdeliveredorsecuritiesaresoldonalaterdate.
Unlessotherwiseindicatedorthecontextotherwiserequires,theterms"Trinseo,""we,""us,""our,""ourCompany"and"ourbusiness"refertoTrinseoS.A.togetherwithitsconsolidatedsubsidiaries.Priortoourformation,ourbusinesseswerewholly-ownedbyTheDowChemicalCompany.Werefertoourpredecessorbusinessesas"theStyronbusiness."OnJune17,2010,investmentfundsadvisedormanagedbyBainCapitalPartners,LPacquiredtheStyronbusiness,andDowEuropeHoldingB.V.,whichwerefertoas"DowEurope,"or,togetherwithotheraffiliatesofTheDowChemicalCompany,"Dow,"retainedanownershipinterestintheStyronbusinessthroughanindirectownershipinterestinus.Werefertothistransactionasthe"Acquisition."Referencesto"sellingshareholder"and"Parent"refertoBainCapitalEverestManagerHoldingsSCAdescribedundertheheading"SellingShareholder"onpage6,whomaysellsharesasdescribedinthisprospectus.
Youshouldcarefullyreadtheentireprospectus,includinginformationincorporatedbyreferenceintothisprospectusandthe"RiskFactors"and"CautionaryNoteRegardingForward-LookingStatements"sectionsofthisprospectus,beforedecidingwhethertoinvestinourordinaryshares.
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ABOUT TRINSEO S.A.
Trinseoisaleadingglobalmaterialscompanyengagedinthemanufactureandmarketingofsyntheticrubber,latex,andplastics,includingvariousspecialtyandtechnologicallydifferentiatedproducts.Trinseo'sproductsareincorporatedintoawiderangeofproductsthroughouttheworld,includingtiresandotherproductsforautomotiveapplications,carpetandartificialturfbacking,coatedpaperandpackagingboard,foodpackaging,appliances,medicaldevices,consumerelectronicsandconstructionapplications.Trinseohadapproximately$4.0billioninnetsalesin2015,andasofDecember31,2015had2,270employeesand18manufacturingsitesworldwide.
TrinseoisaLuxembourglimitedliabilitycompany(société anonyme ),witharegisteredofficeat4,rueLouHemmer,L-1748Luxembourg,GrandDuchyofLuxembourgandregisteredwithLuxembourg'sRegisterofCommerceandCompanies(RCS)underRCSnumberB153.549.
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RISK FACTORS
Investing in our ordinary shares involves a high degree of risk. See "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K incorporated byreference in this prospectus and in any subsequent Quarterly Report on Form 10-Q and the "Risk Factors" section in the applicable prospectus supplement for adiscussion of the factors you should carefully consider before deciding to purchase our ordinary shares.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Thisprospectus,includinginformationincorporatedbyreferenceherein,containsforward-lookingstatementsincluding,withoutlimitation,statementsconcerningplans,objectives,goals,projections,strategies,futureeventsorperformance,andunderlyingassumptionsandotherstatements,whicharenotstatementsofhistoricalfacts.Forward-lookingstatementsmaybeidentifiedbytheuseofwordslike"expect,""anticipate,""intend,""forecast,""outlook,""will,""may,""might,""potential,""likely,""target,""plan,""contemplate,""seek,""attempt,""should,""could,""would"orexpressionsofsimilarmeaning.Forward-lookingstatementsreflectmanagement'sevaluationofinformationcurrentlyavailableandarebasedonourcurrentexpectationsandassumptionsregardingourbusiness,theeconomyandotherfutureconditions.Becauseforward-lookingstatementsrelatetothefuture,theyaresubjecttoinherentuncertainties,risksandchangesincircumstancesthataredifficulttopredict.Specificfactorsthatmayimpactperformanceorotherpredictionsoffutureactionshave,inmanybutnotallcases,beenidentifiedinconnectionwithspecificforward-lookingstatements.Ouractualresultsmaydiffermateriallyfromthosecontemplatedbytheforward-lookingstatements.Theyareneitherstatementsofhistoricalfactnorguaranteesorassurancesoffutureperformance.Importantfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseintheforward-lookingstatementsincludeeconomic,business,competitive,marketandregulatoryconditionsandthefollowing:
• ourcurrentlevelofindebtedness;
• thestabilityofourjointventures;
• lawsuitsresultingfromproductsoroperations;
• volatilityincostsordisruptioninthesupplyoftherawmaterialsutilizedforourproducts;
• hazardsassociatedwithchemicalmanufacturing;
• thecompetitivenatureofourendmarkets;
• ourcontinuedrelianceonourrelationshipwithTheDowChemicalCompany;
• ourcompliancewithenvironmental,healthandsafetylaws;
• conditionsintheglobaleconomyandcapitalmarkets;
• anydisruptionsinproductionatourmanufacturingfacilities;
• increasesinthecostofenergy;
• ourabilitytomaintainthenecessarylicensesandpermitsweneedforouroperations;
• failuretomaintainaneffectivesystemofinternalcontrols;
• currentinsurancenotcoveringallpotentialexposures;
• changesinlawsandregulationsapplicabletoourbusiness;
• ourdependenceuponkeyexecutivemanagementandanyinabilitytoattractandretainotherqualifiedmanagementpersonnel;
• fluctuationsincurrencyexchangerates;
• strategicacquisitionsaffectingcurrentoperations;
• thelossofcustomers;
• anyinabilitytocontinuetechnologicalinnovationandsuccessfulintroductionofnewproducts;
• anyinabilitytoprotectourtrademarks,patentsorotherintellectualpropertyrights;
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• datasecuritybreaches;
• failureofourassumptionsandprojectionstobeaccurate;
• localbusinessrisksindifferentcountriesinwhichweoperate;
• seasonalityofourbusiness;and
• otherrisksdescribedinthe"RiskFactors"sectionofthisprospectusandtheapplicableprospectussupplement.
Wederivemanyofourforward-lookingstatementsfromouroperatingbudgetsandforecasts,whicharebaseduponmanydetailedassumptions.Whilewebelievethatourassumptionsarereasonable,wecautionthatitisverydifficulttopredicttheimpactofknownfactors,anditisimpossibleforustoanticipateallfactorsthatcouldaffectouractualresults.Importantfactorsthatcouldcauseactualresultstodiffermateriallyfromourexpectations,orcautionarystatements,aredisclosedunderthesectionentitled"RiskFactors"andthesectionsentitled"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"fromourAnnualReportonForm10-KandQuarterlyReportsonForm10-Q,incorporatedbyreferenceintothisprospectus.Allwrittenandoralforward-lookingstatementsattributabletous,orpersonsactingonourbehalf,areexpresslyqualifiedintheirentiretybythecautionarystatementsaswellasothercautionarystatementsthataremadefromtimetotimeinourotherpubliccommunications.Youshouldevaluateallforward-lookingstatementsmadeinthisprospectusandthedocumentsincorporatedbyreferencehereininthecontextoftheserisksanduncertainties.
Wecautionyouthattheimportantfactorsreferencedabovemaynotcontainallofthefactorsthatareimportanttoyou.Inaddition,wecannotassureyouthatwewillrealizetheresultsordevelopmentsweexpectoranticipateor,evenifsubstantiallyrealized,thattheywillresultintheconsequencesoraffectusorouroperationsinthewayweexpect.Theforward-lookingstatementsincludedinthisprospectusandthedocumentsincorporatedbyreferencehereinaremadeonlyasofthedateoftheapplicabledocument.Weundertakenoobligationtopubliclyupdateorreviseanyforward-lookingstatementasaresultofnewinformation,futureeventsorotherwise,exceptasotherwiserequiredbylaw.
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USE OF PROCEEDS
Wewillnotreceiveanyproceedsfromthesaleofourordinarysharesbythesellingshareholder.
SELLING SHAREHOLDER
Thesellingshareholdernamedinthisprospectusmayoffertosellfromtimetotimeupto37,269,567ofourordinaryshares,asprovidedinthisprospectusunderthesectionentitled"PlanofDistribution"andinanyapplicableprospectussupplement.However,wedonotknowwhenorinwhatamountthesellingshareholdermayofferitssharesforsaleunderthisprospectus.ThesellingshareholderreceivedsuchsharesinconnectionwiththeAcquisition.
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Maximum Number of Shares that
may be offered
pursuant to this
Prospectus
Shares owned Prior to the
Offering Shares Owned After the
Offering
Name Number of
Shares Percentage Number of
Shares Percentage BainCapitalEverestManagerHoldingsSCA("Parent")(1) 37,269,567 76.4% 37,269,567
(1) ThegeneralpartnerofourParentisBainCapitalEverestManagerS.à.r.l.("BCEM").Byvirtueoftherelationshipsdescribedinthisfootnote,BCEMmaybedeemedtoexercisevotinganddispositivepowerwithrespecttothesharesheldbyParent.MichelG.Plantevin,AurélienVasseur,ChristopherD.Pappas,StephenThomas,FelixHauser,andStephenM.ZideareeachmanagersofBCEM.ThemanagersofBCEMdisclaimbeneficialownershipofsuchsharestotheextentattributedtothemsolelybyvirtueofservingasamanagerofBCEM.AlloftheoutstandingsharecapitalofBCEMisheldbyBainCapitalEuropeFundIII,L.P.("EuropeFundIII")and,inthatcapacity,EuropeFundIIIhasthepowertoappointthemanagersofBCEM.BainCapitalInvestors,LLC("BCI")isthegeneralpartnerofBainCapitalPartnersEuropeIII,L.P.,whichisthegeneralpartnerofEuropeFundIII.Asaresultoftherelationshipsdescribedabove,BCImaybedeemedtosharebeneficialownershipofthesharesheldbyourParent.Thegovernance,investmentstrategyanddecision-makingprocesswithrespecttoinvestmentsheldbyEuropeFundIIIisdirectedbyBCI'sGlobalPrivateEquityBoard("GPEB"),whichiscomprisedofthefollowingindividuals:StevenBarnes,JoshuaBekenstein,JohnConnaughton,DavidGross-Loh,StephenPagliuca,MichelG.Plantevin,DwightPoler,andJonathanZhu.Byvirtueoftherelationshipsdescribedinthisfootnote,GPEBmaybedeemedtoexercisevotinganddispositivepowerwithrespecttothesharesheldbyourParent.EachofthemembersofGPEBdisclaimsbeneficialownershipofsuchsharestotheextentattributedtosuchmembersolelybyvirtueofservingonGPEB.TheaddressforourParentandBCEMis4,rueLouHemmer,L-1748Luxembourg,GrandDuchyofLuxembourg.EuropeFundIIIhasanaddressofUglandHouse,SouthChurchStreet,GeorgeTown,GrandCayman,KY1-1104CaymanIslandsandBCIhasanaddressc/oBainCapitalPartners,LP,200ClarendonStreet,Boston,Massachusetts02116.TheaddressofMr.Hauserisc/oBainCapitalBeteiligungsberatungGmbHMaximilianstrasse11,80539Munich,Germany.
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PLAN OF DISTRIBUTION
Thesellingshareholderwillsellthesecuritiesofferedherebyinoneormoreofthefollowingways(orinanycombinationthere)fromtimetotime:
• toorthroughunderwriters;
• throughagents;
• throughbrokersordealers;
• directlytopurchasers,includingthroughaspecificbidding,auctionorotherprocessorinprivatelynegotiatedtransactions;
• throughacombinationofsuchmethods;or
• throughanyothermethodpermittedbyapplicablelaw.
Aprospectussupplementwilldescribethetermsoftheofferingoftheordinaryshares,includingthefollowing:
• thenameornamesofanyunderwriters,dealersoragentsandtheamountofordinarysharesunderwrittenorpurchasedbyeachofthem;
• thepublicofferingpriceoftheordinaryshares,theproceedstothesellingshareholder,andanydiscounts,commissionsorconcessionsallowedorreallowedorpaidtounderwriters,dealersoragents,andotheritemsconstitutingunderwriters',dealers'oragents'compensation;
• anydelayeddeliveryarrangements;and
• informationaboutthesellingshareholder,includingtherelationshipbetweenthesellingshareholderandus.
Anyofferingpriceandanydiscountsorconcessionsallowedorreallowedorpaidtodealerswillbespecifiedintheprospectussupplementandmaybechangedfromtimetotime.
Onlytheagentsorunderwritersnamedintheprospectussupplementareagentsorunderwritersinconnectionwiththeordinarysharesbeingofferedthereby.
Thesellingshareholdermayauthorizeunderwriters,dealersorotherpersonsactingasouragentstosolicitoffersbycertaininstitutionstopurchasesecuritiesfromthesellingshareholderpursuanttodelayeddeliverycontractsprovidingforpaymentanddeliveryonthedatestatedineachapplicableprospectussupplement.Eachcontractwillbeforanamountnotlessthan,andtheaggregateamountofsecuritiessoldpursuanttosuchcontractsshallnotbelessnormorethan,therespectiveamountsstatedineachapplicableprospectussupplement.Institutionswithwhomthecontracts,whenauthorized,maybemadeincludecommercialandsavingsbanks,insurancecompanies,pensionfunds,investmentcompanies,educationalandcharitableinstitutionsandotherinstitutions,butshallinallcasesbesubjecttoourapproval.Delayeddeliverycontractswillbesubjectonlytothoseconditionssetforthintheprospectussupplement,andtheprospectussupplementwillsetforthanycommissionswepayforsolicitationofthesecontracts.
Agents,underwritersandotherthirdpartiesdescribedabovemaybeentitledtoindemnificationbyusandthesellingshareholderagainstcertaincivilliabilities,includingliabilitiesundertheSecuritiesAct,ortocontributionfromusandthesellingshareholderwithrespecttopaymentswhichtheagents,underwritersorthirdpartiesmayberequiredtomakeinrespectthereof.Agents,underwritersandsuchotherthirdpartiesmaybecustomersof,engageintransactionswith,orperformservicesforusorthesellingshareholderintheordinarycourseofbusiness.Weandthesellingshareholdermayalsouseunderwritersorsuchotherthirdpartieswithwhomweorsuchsellingshareholderhaveamaterial
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relationship.Weandthesellingshareholderwilldescribethenatureofanysuchrelationshipintheapplicableprospectussupplement.
Certainunderwritersmayusethisprospectusandanyaccompanyingprospectussupplementforoffersandsalesrelatedtomarket-makingtransactionsinourordinaryshares.Theseunderwritersmayactasprincipaloragentinthesetransactions,andthesaleswillbemadeatpricesrelatedtoprevailingmarketpricesatthetimeofsale.Anyunderwritersinvolvedinthesaleofourordinarysharesmayqualifyas"underwriters"withinthemeaningofSection2(a)(11)oftheSecuritiesAct.Inaddition,theunderwriters'commissions,discountsorconcessionsmayqualifyasunderwriters'compensationundertheSecuritiesActandtherulesoftheFinancialIndustryRegulatoryAuthority.
OurordinarysharesarelistedonTheNewYorkStockExchange.Underwritersmaymakeamarketinourordinaryshares,butwillnotbeobligatedtodosoandmaydiscontinueanymarketmakingatanytimewithoutnotice.Wecanmakenoassuranceastothedevelopment,maintenanceorliquidityofanytradingmarketinourordinaryshares.
Certainpersonsparticipatinginanofferingmayengageinoverallotment,stabilizingtransactions,shortcoveringtransactionsandpenaltybidsinaccordancewithrulesandregulationsundertheSecuritiesExchangeActof1934,asamended(the"ExchangeAct").Overallotmentinvolvessalesinexcessoftheofferingsize,whichcreateashortposition.Stabilizingtransactionspermitbidstopurchasetheunderlyingsecuritysolongasthestabilizingbidsdonotexceedaspecifiedmaximum.Shortcoveringtransactionsinvolvepurchasesoftheordinarysharesintheopenmarketafterthedistributioniscompletedtocovershortpositions.Penaltybidspermittheunderwriterstoreclaimasellingconcessionfromadealerwhentheordinarysharesoriginallysoldbythedealerarepurchasedinacoveringtransactiontocovershortpositions.Thoseactivitiesmaycausethepriceoftheordinarysharestobehigherthanitwouldotherwisebe.Ifcommenced,theunderwritersmaydiscontinueanyoftheactivitiesatanytime.
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LEGAL MATTERS
CertainlegalmattersinconnectionwiththisofferingwillbepasseduponforusbyRopes&GrayLLP,Boston,Massachusetts.Ropes&GrayLLPandsomeofitsattorneysarelimitedpartnersofRGIP,LP,whichisaninvestorincertaininvestmentfundsadvisedormanagedbyBainCapitalPartners,LPandoftenaco-investorwithsuchfunds.RGIP,LPindirectlyownslessthan1%ofouroutstandingordinaryshares.ThevalidityoftheissuanceofordinarysharestobesoldinthisofferingwillbepasseduponforusbyLoyens&LoeffLuxembourgS.à.r.l.,Luxembourg.
EXPERTS
TheauditedfinancialstatementsofTrinseoS.A.incorporatedinthisProspectusbyreferencetotheAnnualReportonForm10-KfortheyearendedDecember31,2015,exceptastheyrelatetoAmericasStyrenicsLLC,andtheeffectivenessofinternalcontroloverfinancialreportingasofDecember31,2015havebeenauditedbyPricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm.Suchfinancialstatements,exceptastheyrelatetoAmericasStyrenicsLLC,andmanagement'sassessmentoftheeffectivenessofinternalcontroloverfinancialreportinghavebeensoincorporatedinrelianceonthereportofsuchindependentregisteredpublicaccountingfirmgivenontheauthorityofsaidfirmasexpertsinauditingandaccounting.
TheconsolidatedfinancialstatementsofAmericasStyrenicsLLC,incorporatedinthisprospectusbyreferencefromTrinseoS.A.'sAnnualReportonForm10-KfortheyearendedDecember31,2015,havebeenauditedbyDeloitte&ToucheLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreport,whichisincorporatedhereinbyreference.Suchfinancialstatementshavebeensoincorporatedinrelianceuponthereportofsuchfirmgivenupontheirauthorityasexpertsinaccountingandauditing.
WHERE YOU CAN FIND MORE INFORMATION
WehavefiledwiththeSECaregistrationstatementonFormS-3undertheSecuritiesActwithrespecttoourordinarysharesbeingofferedbythisprospectus.Thisprospectus,whichformsapartoftheregistrationstatement,doesnotcontainalloftheinformationsetforthintheregistrationstatement.Forfurtherinformationwithrespecttousandtheordinaryshares,referenceismadetotheregistrationstatementandtheexhibitsandschedulesfiledasapartthereof.Statementscontainedinthisprospectusastothecontentsofanycontractorotherdocumentarenotnecessarilycomplete.WearesubjecttotheinformationalrequirementsoftheSecuritiesExchangeActof1934and,inaccordancetherewith,wefilereportsandotherinformationwiththeSEC.Theregistrationstatement,suchreportsandotherinformationcanbeinspectedandcopiedatthePublicReferenceRoomoftheSEClocatedat100FStreet,N.E.,Washington,D.C.20549.Copiesofsuchmaterials,includingcopiesofalloranyportionoftheregistrationstatement,canbeobtainedfromthePublicReferenceRoomoftheSECatprescribedrates.YoucancalltheSECat1-800-SEC-0330toobtaininformationontheoperationofthePublicReferenceRoom.ThesematerialsmayalsobeaccessedelectronicallyfromtheSEC'swebsite,www.sec.gov.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
TheSECallowsusto"incorporatebyreference"intothisprospectusinformationwefilewithit,whichmeansthatwecandiscloseimportantinformationtoyoubyreferringtothesedocuments.TheinformationincorporatedbyreferenceisconsideredtobepartofthisprospectusandinformationindocumentsthatwefilelaterwiththeSECwillautomaticallyupdateandsupersedeinformationinthisprospectus.WeincorporatebyreferenceintothisprospectusthedocumentslistedbelowandanyfuturefilingsmadebyuswiththeSECunderSection13(a),13(c),14,or15(d)oftheExchangeAct,exceptforinformationfurnishedunderItems2.02,7.01,or9.01onForm8-Korotherinformation"furnished"
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totheSECwhichisnotdeemedfiledandnotincorporatedinthisprospectus,untiltheterminationoftheofferingofsecuritiesdescribedintheapplicableprospectussupplement.Weherebyincorporatebyreferencethefollowingdocuments:
• OurannualreportonForm10-KfortheyearendedDecember31,2015,filedwiththeSEConMarch11,2016(FileNo.001-36473),andasamendedonMarch15,2016;
• OurcurrentreportsonForm8-KfiledwiththeSEConJanuary26,2016andFebruary26,2016;and
• ThedescriptionofourordinarysharescontainedintheRegistrationStatementonForm8-A,asfiledwiththeSEConJune2,2014(FileNo.001-36473).
Youmayrequestacopyofthesefiling,atnocost,bywritingortelephoningusat:
TrinseoS.A.Attn:CorporateSecretary
1000ChesterbrookBoulevardSuite300
Berwyn,PA19312(610)240-3200
Copiesofthefilingsarealsoavailable,withoutchargeontheSEC'swebsite,www.sec.gov,andonourwebsite,www.trinseo.com,assoonasreasonablypracticableaftertheyarefiledelectronicallywiththeSEC.Theinformationcontainedonourwebsiteisnotapartofthisprospectus.
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TableofContents
Trinseo S.A.8,000,000 Ordinary Shares
PROSPECTUS SUPPLEMENT
Goldman, Sachs & Co.