Lyondell Chemical $325 million 10-year drive-by deal talked at 10¼%-10½%

By Paul A. Harris

St. Louis, May 14 - Price talk of 10¼%-10½% emerged Wednesday on a quick-to-market offering by Lyondell Chemical Co. of $325 million senior secured notes due 2013 (Ba3/BB), according to a syndicate source.

The deal is expected to price on Thursday, the source added.

Citigroup, Banc of America Securities and JP Morgan are joint bookrunners for the Rule 144A transaction.

The notes are non-callable for five years.

Proceeds will be used to prepay $103 million of term loans and approximately $215 million that will be borrowed under Lyondell's revolver to fund the purchase of the butanediol manufacturing plant in The Netherlands that the company currently leases.

The issuer is headquartered in Houston.

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