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LyondellBasell prices $2.75 billion senior notes

March 26/2010

March 26 (BusinessWeek) -- LyondellBasell said Thursday it priced a senior note offering at $2.75 billion to support the chemical company's emergence from Chapter 11 bankruptcy protection.


The notes will be issued by LBI Escrow Corp., which will merge into subsidiary Lyondell Chemical Co., as part of the Lyondell Chemical's climb out bankruptcy, which is expected to occur around April 30, if its reorganization plan is approved.


The senior notes are made up of $2.25 billion of 8 percent senior secured notes and 375 million euros of 8 percent senior secured notes, both maturing in 2017. The offering is scheduled to close April 8.


The company plans to use proceeds from the offering, which will be put in escrow until its reorganization plan is approved, to repay debt.


LyondellBasell is the world's third-largest independent chemical company and is controlled by billionaire investor and founder of Access Industries, Len Blavatnik. Its products are used in gasoline, plastics, electronics, autos, paints and many other products.


LyondellBasell was formed in 2008, when Basell International Holdings paid $12.7 billion for Houston-based Lyondell Chemical, taking on debt just as oil prices skyrocketed, squeezing profit margins at chemical makers.


As oil prices fell in the second half of 2008, the recession undercut demand for chemical products, leading several affiliates and subsidiaries of Netherlands-based LyondellBasell to file for bankruptcy protection earlier last year.

LyondellBasell prices $2.75 billion senior notes

MRC Reference

LyondellBasell.  The share in the Russian market in 2008:
 PE  - 1.4% (including HDPE - 2.5%, LDPE Ц 0.3%);
 PP Ц 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
 PE - 27%;
 PP Ц 88%.

The leader in the following polymers processing technologies:

 pipe extrusion;

 film extrusion;

 injection molding.









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