New Issue: Lyondell Chemical upsizes seven-year notes to $393 million, yields 9½%

By Paul A. Harris

St. Louis, Mo., Nov. 30 - Lyondell Chemical Co. upsized its offering of seven-year senior secured notes (Ba3/BB) to $393 million from an announced $350 million and priced it at 9½%, the tight end of talk of 9½%- 9 5/8%, according to syndicate sources.

Salomon Smith Barney and J.P Morgan were joint bookrunners. Banc of America Securities, Credit Suisse First Boston, Banc One Capital Markets, Credit Lyonnais, Mizuho, Scotia Capital and S.G. Cowen were co-managers.

"The deal went extremely well. It was highly oversubscribed, by big names," a syndicate source said.

Another syndicate official said that there was broad participation in the deal, on the part of both US and European accounts.

Issuer:	Lyondell Chemical Co.
Amount:	$393 million (upsized from $350 million)
Maturity:	Dec. 15, 2008
Type:	Senior secured notes
Managers:	Salomon Smith Barney, J.P. Morgan (joint)
Coupon:	9½%
Price:	Par
Yield:	9½%
Spread:	493 basis points over. 4 ¾% Treasury due Nov., 2008
Call features:	Callable on Dec. 15, 2005 at 104.75, then at 102.375,
	declining to par on Dec. 15, 2007 and thereafter
Equity clawback:	none
Settlement:	Dec. 4 (flat)
Ratings:	Moody's Ba3
	Standard & Poor's BB
Cusip:	552078AP2
End

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