New Issue: Lyondell Chemical upsized $510 million 10-year notes yield 6 7/8%

By Paul A. Harris

St. Louis, May 30 - Lyondell Chemical Co. priced an upsized $510 million issue of 10-year senior unsecured notes (/B+/BB-) at par to yield 6 7/8% in a quick-to-market Wednesday transaction, according to an informed source.

The yield was printed on top of the price talk.

Citigroup, Banc of America Securities LLC, Deutsche Bank Securities and JPMorgan were joint bookrunners for the Securities and Exchange Commission-registered issue, which was upsized from $500 million.

Proceeds, together with cash on hand, will be used to repay in full the company's $500 million of its 10 7/8% senior subordinated notes due May 1, 2009.

The issuer is a Houston-based independent publicly traded chemical company.

Issuer:	Lyondell Chemical Co.
Amount:	$510 million (increased from $500 million)
Maturity:	June 15, 2017
Security description:	Senior unsecured notes
Bookrunners:	Citigroup, Banc of America Securities LLC, Deutsche Bank Securities, JPMorgan
Co-managers:	BNY Capital Markets, Credit Suisse, HVB Capital Markets, Morgan Stanley, Natexis Bleichroeder, Scotia Capital, SG Corporate & Investment Banking, UBS Investment Bank, Wachovia Securities
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	201 bps
Call protection:	Make-whole at Treasuries plus 50 bps until June 15, 2012, then at 103.438, 102.292, 101.146, par on and after June 15, 2015
Equity clawback:	Until June 15, 2010 for 35% at 106.875
Trade date:	May 30
Settlement date:	June 1
Ratings:	Standard & Poor's: B+
	Fitch: BB-
Price talk:	6 7/8% area

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