New Issue: Lyondell Chemical $325 million 10-year notes yield 10½%

By Paul A. Harris

St. Louis, May 15 - Lyondell Chemical Co. sold $325 million of senior secured notes due June 1, 2013 (Ba3/BB) at par Thursday to yield 10½%, according to a market source.

Price talk was for a yield of 10¼%-10½%.

Citigroup, Banc of America Securities and JP Morgan were joint bookrunners.

Proceeds from the Rule 144A notes will be used to prepay $103 million of term loans and $215 million that will be borrowed under Lyondell's revolver to fund the purchase of a butanediol manufacturing plant in The Netherlands.

The chemical company is based in Houston.

Issuer:	Lyondell Chemical Co.
Amount:	$325 million
Maturity:	June 1, 2013
Security description:	Senior secured notes
Bookrunners:	Citigroup, Banc of America Securities, JP Morgan (joint)
Coupon:	10½%
Price:	Par
Yield:	10½%
Spread:	698 basis points
Call features:	Callable on June 1, 2008 at 105.25, then at 103.50, 101.75, declining to par on June 1, 2011 and thereafter
Settlement date:	May 20, 2003
Existing Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Price talk:	10¼%-10½%

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