By Devika Patel
Knoxville, Tenn., Oct. 7 – LYB International Finance III, LLC offered further details, including the price, spread and yield, about a floating-rate tranche of notes and five tranches of fixed-rate notes (Baa2/BBB-/BBB) that priced on Tuesday for a total of $3.9 billion of new notes, all guaranteed by LyondellBasell Industries NV, according to an FWP filed with the Securities and Exchange Commission.
The issue includes $650 million of guaranteed floating-rate notes due Oct. 1, 2023, which priced at par and has a coupon of Libor plus 100 basis points.
The fixed-rate tranches include:
• $500 million of 1.25% guaranteed notes due Oct. 1, 2025, which priced at 99.683 to yield 1.316% with a spread of Treasuries plus 100 bps;
• $500 million of 2.25% guaranteed notes due Oct. 1, 2030, which priced at 99.203 to yield 2.34% with a spread of Treasuries plus 160 bps;
• $750 million of 3.375% guaranteed notes due Oct. 1, 2040, which priced at 99.77 to yield 3.391% with a spread of Treasuries plus 185 bps;
• $1 billion of 3.625% guaranteed notes due April 1, 2051, which priced at 99.707 to yield 3.641% with a spread of Treasuries plus 210 bps; and
• $500 million of 3.8% guaranteed notes due Oct. 1, 2060, which priced at 99.166 to yield 3.841% with a spread of Treasuries plus 230 bps.
J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used, together with available cash, to help fund the company’s purchase of a 50% interest from Sasol Chemicals (USA) LLC in a newly formed venture that will own plants and infrastructure located in Louisiana; repay a portion of its term loan due 2022; redeem up to $1 billion of its 6% senior notes due 2021; and redeem up to €750 million of its 1.875% guaranteed notes due 2022.
If the joint venture is not completed, the issuer will be required to redeem the notes at 101 plus interest.
LyondellBasell is a chemical company based in London.
| Issuer: | LYB International Finance III, LLC
|
| Issue: | LyondellBasell Industries NV
|
| Amount: | $3.9 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and Wells Fargo Securities LLC
|
| Senior co-managers: | HSBC Securities (USA) Inc., ING Financial Markets LLC, MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and UniCredit Capital Markets LLC
|
| Co-managers: | Loop Capital Markets LLC, BNY Mellon Capital Markets LLC and Siebert Williams Shank & Co. LLC
|
| Pricing date: | Oct. 6
|
| Settlement date: | Oct. 8
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Floating-rate notes
|
| Amount: | $650 million
|
| Maturity: | Oct. 1, 2023
|
| Coupon: | Libor plus 100 bps
|
| Price: | Par
|
| Yield: | Libor plus 100 bps
|
| Call: | On or after Oct. 1, 2021 at par
|
|
|
| 2025 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 1.25%
|
| Price: | 99.683
|
| Yield: | 1.316%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Sept. 1, 2025, then a par call
|
|
|
| 2030 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2030
|
| Coupon: | 2.25%
|
| Price: | 99.203
|
| Yield: | 2.34%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until July 1, 2030, then a par call
|
|
|
| 2040 notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 1, 2040
|
| Coupon: | 3.375%
|
| Price: | 99.77
|
| Yield: | 3.391%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until April 1, 2040, then a par call
|
|
|
| 2051 notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2051
|
| Coupon: | 3.625%
|
| Price: | 99.707
|
| Yield: | 3.641%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Oct. 1, 2050, then a par call
|
|
|
| 2060 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2060
|
| Coupon: | 3.8%
|
| Price: | 99.166
|
| Yield: | 3.841%
|
| Spread: | Treasuries plus 230 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until April 1, 2060, then a par call
|
|
|
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