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Lyondell Chemical to launch $2.75 billion credit facility on Monday
By Sara Rosenberg
New York, March 12 - Lyondell Chemical Co. is scheduled to hold a bank meeting on Monday at 10:30 a.m. ET to launch its proposed $2.75 billion credit facility, according to a market source.
The facility consists of a $1 billion six-year senior secured term loan B and a $1.75 billion ABL revolver, the source said.
UBS, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan, Morgan Stanley and Wells Fargo are the joint bookrunners on the term loan B, with UBS the left lead.
Citigroup is the left lead on the ABL revolver.
Covenants under the term loan B include a maximum first-lien leverage ratio and a minimum interest coverage ratio.
Security for the term loan B following the company's emergence from bankruptcy will be a first-priority lien on substantially all of the issuer's and each subsidiary guarantors' existing future property and assets other than the assets securing the U.S. ABL revolver, 100% of the capital stock of each U.S. subsidiary, 65% of the capital stock of LyondellBasell Subholdings BV and a second-priority lien on the assets that secure the U.S. ABL revolver.
Commitments towards the term loan B are due late in the week of March 22.
Proceeds from the credit facility, $2.25 billion of 71/2-year senior secured notes, a new European securitization facility and a $2.8 billion rights offering will be used to repay and replace existing debt, including the company's debtor-in-possession facilities and an existing European securitization facility and to make related payments, when the company exits bankruptcy.
Lyondell is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels company.
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