LyondellBasell to launch $2.15 billion ABL tranches on Thursday

By Sara Rosenberg

New York, Nov. 26 - LyondellBasell Industries has scheduled a bank meeting for Thursday to launch the $2.15 billion in ABL tranches under its $14.6 billion senior secured credit facility to ABL investors, according to a market source.

The ABL debt is comprised of a $1.15 billion ABL receivables purchase program facility talked at Libor plus 150 basis points and a $1 billion ABL inventory based facility talked at Libor plus 175 bps.

LyondellBasell's credit facility also includes a $1 billion cash flow revolver talked at Libor plus 300 basis points, with a 75 bps undrawn fee, a $2 billion U.S. and euro term loan A talked at Libor plus 300 bps and a $9.45 billion U.S. and euro term loan B talked at Libor plus 325 bps.

Senior managing agent rounds for the deal already took place at the end of October in New York and London.

There is still no announcement on when the cash flow revolver and term loan debt will be launched to retail investors, the source added. Previously, it was thought that the retail launch could occur this week. It was also speculated that the term loan B might be offered to investors at an original issue discount of 99.

Citigroup, Goldman Sachs, Merrill Lynch, ABN Amro and UBS are the joint lead arrangers and joint bookrunners on the facility.

Covenants under the cash flow revolver, term loan A and term loan B include a first-lien senior secured leverage ratio of 3.75 times and a fixed-charge coverage ratio of 1.1 times.

Proceeds will be used to help fund Basell's acquisition of Lyondell Chemical Co. for $48.00 per common share in an all-cash transaction with a total enterprise value of about $19 billion, including the assumption of debt.

The combined company will be named LyondellBasell Industries.

Basell is a Netherlands-based producer of polypropylene and polyethylene. Lyondell is a Houston-based chemical company.

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