LyondellBasell, a global petrochemical and fuel company, priced $2.7 billion of senior secured notes due 2017 in a private placement under Rule 144A and Regulation S.
The senior secured notes comprise $2.2 billion of 8% senior secured notes and €375 million ($499 million) of 8% senior secured, both issued at par, maturing in 2017. The deal's closing is set for April 8.
The notes will be issued by LBI Escrow Corp., which will merge into Lyondell Chemical Co. in connection with Lyondell Chemical's emergence from bankruptcy, which is expected to happen on or about April 30.
LyondellBasell entities are also arranging a senior term loan facility of approximately $500 million and a $1,750 million asset-based revolving credit facility for working capital and general corporate purposes.
The net proceeds from the sale of the notes, together with borrowings under the term loan and a new European securitization facility and proceeds from a $2,800 million rights offering, will be used upon emergence from bankruptcy to repay and replace certain existing debt, including debtor-in-possession credit facilities and an existing European securitization facility and to make certain related payments.