Published on 4/15/2020 in the Prospect News Investment Grade Daily.
New Issue: LyondellBasell Industries sells $2 billion three-part offering of guaranteed notes
By Cristal Cody
Tupelo, Miss., April 15 – LyondellBasell Industries NV subsidiary LYB International Finance III BV priced $2 billion of guaranteed notes (Baa1/BBB) in three tranches on Wednesday, according a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 2.875% five-year notes at 99.911 to yield 2.894%, or a spread of 255 basis points over Treasuries.
Initial guidance was in the Treasuries plus 265 bps area.
A $500 million tranche of 3.375% 10-year notes was sold at 99.813 to yield 3.397%. The notes priced with a spread of Treasuries plus 275 bps, compared to initial price talk in the 280 bps over Treasuries area.
Also, $1 billion of 4.2% 30-year notes priced at 99.373 to yield 4.237%, or a Treasuries plus 295 bps spread.
The tranche was talked to print in the 300 bps over Treasuries area.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including to increase liquidity and manage short-term debt maturities.
The notes are guaranteed by parent LyondellBasell Industries, a Houston-based chemical company with executive offices in London and incorporated in the Netherlands.
| Issuer: | LYB International Finance III BV
|
| Guarantor: | LyondellBasell Industries NV
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| Amount: | $2 billion
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| Description: | Guaranteed notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC
|
| Senior co-managers: | HSBC Securities (USA) LLC, ING Bank NV, MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and UniCredit Capital Markets LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Trade date: | April 15
|
| Settlement date: | April 20
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $500 million
|
| Maturity: | May 1, 2025
|
| Coupon: | 2.875%
|
| Price: | 99.911
|
| Yield: | 2.894%
|
| Spread: | Treasuries plus 255 bps
|
| Call features: | Make-whole call before April 1, 2025 at Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 265 bps area
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | May 1, 2030
|
| Coupon: | 3.375%
|
| Price: | 99.813
|
| Yield: | 3.397%
|
| Spread: | Treasuries plus 275 bps
|
| Call features: | Make-whole call before Feb. 1, 2030 at Treasuries plus 45 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 280 bps area
|
|
|
| 30-year notes
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| Amount: | $1 billion
|
| Maturity: | May 1, 2050
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| Coupon: | 4.2%
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| Price: | 99.373
|
| Yield: | 4.237%
|
| Spread: | Treasuries plus 295 bps
|
| Call features: | Make-whole call before Nov. 1, 2049 at Treasuries plus 45 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 300 bps area
|
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