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Lyondell Chemical launches B loan at Libor plus 425 bps, revolver at Libor plus 375 bps
By Sara Rosenberg
New York, March 15 - Lyondell Chemical Co. launched its $1 billion six-year senior secured term loan B on Monday with price talk in the Libor plus 425 basis points area with a 2% Libor floor, and its $1.75 billion ABL revolver with talk of Libor plus 375 bps, according to sources.
The original issue discount on the term loan B is still to be determined, one source added.
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 $2.75 billion 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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