LyondellBasell is looking to raise $3.25 billion in exit financing, the Houston-based company said late Thursday. The package will include both junk bonds and a senior term loan facility.

The chemical company plans to issue $2.25 billion in senior secured notes due 2017 and hopes to price the bonds by Mar. 26, according to KDP Investment Advisors. This would leave the term loan facility at $1 billion.

The proceeds from the debt financing, along with debt under a new European securitization facility and funds from a $2.8 billion rights offering, would be used to repay and replace existing debt, including DIP facilities and an existing European securitization facility when the company exits bankruptcy.

 Bank of America Merrill Lynch is the lead underwriter for the bond offer, according to KDP. A Lyondell representative declined to comment.

Last month, the company reached a deal with a group of unsecured creditors that set the stage for the company to exit Chapter 11 protection. The agreement increases the amount that will be distributed to unsecured holders of subsidiary Millennium Holdings bonds and Lyondell's 2015 notes. LyondellBasell filed for bankruptcy for its U.S. operations and one of its European holding companies on Jan. 8, 2009.

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