NEW YORK (Dow Jones)--Chemicals maker LyondellBasell Industries NV (LYB) is the
latest foreign company to tap the U.S. private-placement market, offering $3
billion of new debt to refinance two costlier issues.
LyondellBasell is among a large number of companies that have been taking
advantage of historically low interest rates to push back maturities and lower
their interest expenses.
The Rotterdam, Netherlands, multinational plans to offer seven- and 12-year
maturities in the Rule 144A private-placement/Reg S market, and use the proceeds
from the sale to fund a tender for $618.9 million of 8% senior notes due 2017,
EUR103.9 million ($137.7 million) of 8% senior secured euro-denominated notes due
2017, and $1.92 billion of 11% senior secured notes due 2018.
The high-yield notes are expected to be rated Ba2 by Moody's Investors Service
and BB-plus by Fitch Ratings.
J.P. Morgan Chase & Co. (JPM) and Credit Suisse Group AG (CS, CSGN.VX) are lead
underwriters on the deal, with support from 12 other banks.
LyondellBasell last accessed the U.S. debt markets in November, when it sold $1
billion of 6%-coupon, 10-year notes, according to data provider Dealogic. This $3
billion deal is the largest offering in at least 12 years.
In its tender offer, the company is offering $1,095 per $1,000 of face value for
the 8% dollar-denominated notes and $1,075 per $1,000 of face value for the 11%
notes.
The company had experienced better fortunes since emerging from Chapter 11
bankruptcy in 2010, seeing business conditions and results improve.
LyondellBasell last month reported that it swung to a fourth-quarter loss on
refinancing costs and a shutdown of an oil refinery.
Shares rose 1.1% to $42.98 recently. The stock is up 32% this year. |
