Lyondell Offers Senior Notes

It seeks to raise $1.78 billion.

Author:: TSC and IRIS Staff
Publish date:: Sep 6, 2006 6:54 AM EDT

It seeks to raise $1.78 billion.

Chemical company

Lyondell Chemical

(LYO)

said Tuesday that it plans to raise $1.775 billion through a public offering of senior unsecured notes on or about Sept. 7 as part of a financing plan.

The Houston-based company will also begin a cash tender offer on Tuesday for about $849 million of 9.625% senior secured notes due May 1, 2007. The offer will expire on Oct. 2.

The company said that the tender offer will be funded with a portion of the proceeds from the new note offering.

The remainder of the proceeds from the note offering will be used to repay a portion of the new 7-year term loan used to finance Lyondell's Aug. 16 acquisition of Citgo Petroleum's 41.25% stake in Lyondell-Citgo Refining LP, the company added.

Additionaly, the company said that it intends to commence the syndication of its new $800 million 5-year revolver and $1.775 billion of its new 7-year term loan on Sept. 7.

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