Lyondell accepts tenders for $760 million of 9 5/8% notes, sets payout

By Laura Lutz

Des Moines, Sept. 20 - Lyondell Chemical Co. received tenders for $760 million, or about 89.5%, of its $849.16 million outstanding 9 5/8% series A senior secured notes due 2007 by the Sept. 18 consent deadline of its cash tender offer.

The company also announced that it would pay $1,023.78 per $1,000 principal amount, plus accrued interest, for notes tendered before the consent deadline.

The payout is based on the present value of the $1,000 repayment price at maturity on May 1, 2007, discounted using the yield to maturity of the 3.625% Treasury due April 30, 2007, which was 5.11% on Sept. 18, plus 50 basis points, less accrued interest up to but excluding the payment date.

Notes tendered after the consent deadline will receive the same amount, less a $30.00 consent payment.

The consents it has received allow Lyondell to eliminate substantially all the restrictive covenants from the note indenture as well as amend the events of default and certain other provisions.

The offer ends at midnight ET on Oct. 2.

J.P. Morgan Securities Inc. is the dealer manager and solicitation agent (call collect 212 270-7407 or 800 245-8812). The information agent is D.F. King & Co., Inc. (800 758-5378 or call collect 212 269-5550).

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

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