Lyondell starts roadshow for $1.775 billion two-part note offering

By Paul A. Harris

St. Louis, Sept. 7 - Lyondell Chemical Co. started a roadshow on Thursday for its $1.775 billion two-part offering of senior unsecured notes (expected B1/expected B+/confirmed BB-), according to an informed source.

The company is offering eight-year notes, which come with four years of call protection, and 10-year notes, which come with five years of call protection. Tranche sizes remain to be determined.

The notes have been registered with the Securities and Exchange Commission and are expected to price on Sept. 15.

JP Morgan, Banc of America Securities LLC, Citigroup and Morgan Stanley are joint bookrunners. BNY Capital Markets, Inc., Deutsche Bank Securities, Scotia Capital, Societe General, UBS Investment Bank and Wachovia Securities are co-managers.

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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