New Issue: Millenium sells $125 million convertible to yield 4%, up 42%

Nashville, Nov. 20 - Millennium Chemicals Inc. launched $125 million of 20-year convertible notes at par to yield 4% with a 42% initial conversion premium via joint bookrunners JPMorgan Securities and Banc of America Securities.

The Rule 144A deal priced at the aggressive end of revised price talk for a 4% yield, up 40% to 42%. Original guidance was for 4.25% to 4.75%, up 35% to 40%.

The Hunt Valley, Md., chemical company said proceeds would be used to repay the remaining balance of its term loan facility and to reduce borrowings under its revolving credit facility.

Terms of the deal are:

Issuer:	Millennium Chemicals Inc.
Issue:	Convertible senior notes
Lead managers:	JPMorgan Securities and Banc of America Securities
Amount:	$125 million
Greenshoe:	$25 million
Maturity:	Nov. 15, 2023
Coupon:	4.0%
Price:	Par
Yield:	4.0%
Conversion premium:	42%
Conversion price:	$13.63
Conversion ratio:	73.3568
Call:	Non-callable for 7 years
Put:	In years 7, 10 and 15
Contingent conversion:	125%
Price talk:	Initial: 4.25% to 4.75% with a 35% to 40%
	Revised: 4.0%, up 40-42%
Pricing date:	Nov. 19, after the close
Settlement date:	Nov. 25
Distribution:	Rule 144A

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