New Issue: Equistar upsizes add-on to $250 million, yields 9½%

By Paul A. Harris

St. Louis, Nov. 18 - Equistar Chemicals, LP priced an upsized $250 million add-on to its 10 5/8% senior notes due May 1, 2011 (B2/BB-) at 104.685, resulting in a 9½% yield to worst, according to a syndicate source.

The deal was increased from $200 million. Price talk was 104-105.

JP Morgan, Citigroup, Banc of America Securities and Credit Suisse First Boston were bookrunners on the Rule 144A deal. The co-managers were BancOne Capital Markets, BNY Capital Markets, Credit Lyonnais, Scotia Capital and UBS Investment Bank.

Equistar will use $173 million of the proceeds to repay in full its term loans and the remainder to repay revolving credit facility borrowings.

The issuer is a Houston-based joint venture between Lyondell Chemical Co. and Millennium Chemicals Inc.

The original $450 million issue priced at par on April 16.

Issuer:	Equistar Chemicals, LP
Amount:	$250 million (increased from $200 million)
Security description:	Senior notes
Bookrunners:	JP Morgan, Citigroup, Banc of America Securities, Credit Suisse First Boston
Co-managers:	BancOne Capital Markets, BNY, Credit Lyonnais, Scotia Capital, UBS Investment Bank
Maturity:	May 1, 2011
Coupon:	10 5/8%
Price:	104.685
Yield to worst:	9 ½%
Call features:	Make-whole call at T+50 basis points until May 1, 2007, then callable at 105.313, 102.656, declining to par on May 1, 2009 and thereafter
Settlement date:	Nov. 21, 2003 with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: BB-
Price talk:	104-105

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