Lyondell Chemical expected to launch $1.775 billion two-part note offering Thursday

By Paul A. Harris

St. Louis, Sept. 6 - Lyondell Chemical Co. is expected to launch a $1.175 billion two-part offering of notes on Thursday, according to an informed source.

Pricing is expected next week following an investor roadshow.

Although the final structure has not been announced, the offering is expected to be comprised of two tranches of fixed-rate senior notes, the source added.

JP Morgan, Morgan Stanley, Banc of America Securities LLC and Citigroup are joint bookrunners for the transaction, which will be registered with the Securities and Exchange Commission.

Proceeds will be used to fund the Houston-based company's tender for its $849 million of 9 5/8% senior secured notes due May 1, 2007 and to repay a portion of the seven-year term loan used to finance Lyondell's acquisition of Citgo Petroleum Corp.'s 41.25% interest in Lyondell-Citgo Refining LP.

Lyondell is also putting in place a $2.575 billion credit facility.

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