Lyondell gets $3.45 billion credit facility

By Sara Rosenberg

New York, Aug. 16 - Lyondell Chemical Co. closed on a new $3.45 billion senior secured credit facility Wednesday, according to an 8-K filed with the Securities and Exchange Commission.

JPMorgan acted as bookrunner, lead arranger and administrative agent on the deal.

The facility consists of a $2.65 billion seven-year term loan and an $800 million five-year revolving credit facility, with both tranches priced at Libor plus 200 basis points.

Covenants under the facility include an interest coverage ratio of 2.75 and a senior secured debt to adjusted EBITDA ratio of 3.00 at June 30, 2006 and 2.75 at Sept. 30 and thereafter.

Proceeds were used to fund the acquisition of Citgo Petroleum Corp.'s 41.25% interest in Lyondell-Citgo Refining LP and to refinance Lyondell's existing bank debt.

Lyondell is a Houston-based manufacturer and marketer of various chemicals and gasoline-blending components.

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