Lyondell Chemical plans $3.25 billion senior secured notes, term loan

New York, March 11 - LyondellBasell said its Lyondell Chemical Co. subsidiary plans to raise $3.25 billion of first priority debt through the sale of senior secured notes and borrowings under a senior term loan.

Proceeds, along with a new European securitization facility and a $2.8 billion rights offering, will be used to repay and replace existing debt, including its debtor-in-possession facilities and an existing European securitization facility and to make related payments, when the company exits bankruptcy.

The notes and term loan will be senior secured obligations of Lyondell Chemical and will be guaranteed by LyondellBasell Industries NV, the new Dutch parent of the LyondellBasell group, and, subject to certain exceptions, substantially all wholly owned U.S. restricted subsidiaries of LyondellBasell Industries NV.

The notes will be sold under Rule 144A and Regulation S.

Lyondell received approval on Thursday for an equity commitment agreement and its disclosure statement for its plan of reorganization. The confirmation hearing starts on April 23.

Lyondell is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels company. LyondellBasell's U.S. operations and one of its European holding companies filed for bankruptcy on Jan. 6, 2009. The Chapter 11 case number is 09-10023.

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