Published on 2/26/2024 in the Prospect News Investment Grade Daily.
New Issue: LyondellBasell unit sells $750 million 5.5% 10-year notes at Treasuries plus 130 bps
By William Gullotti
Buffalo, N.Y., Feb. 26 – LYB International Finance III, LLC, a subsidiary of LyondellBasell Industries NV, priced $750 million of 5.5% 10-year guaranteed notes (Baa2/BBB/BBB) on Monday with a spread of 130 basis points over Treasuries, according to an FWP and a 424B3 filed with the Securities and Exchange Commission.
The notes priced at 99.234 to yield 5.601%, which will be issued by the subsidiary and guaranteed by the parent.
The notes feature a make-whole call at Treasuries plus 20 bps until Dec. 1, 2033, followed by a par call, and are also callable at par for taxation reasons. There is also a change-of-control put exercisable at 101.
Citigroup Global Markets Inc. and Mizuho Securities USA LLC led the sale with Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and Wells Fargo Securities, LLC also acting as joint bookrunning managers.
Proceeds will be used for general corporate purposes, which may include the repayment of the 5.75% senior notes due 2024 issued by LyondellBasell.
The notes are guaranteed by the parent, a Houston-based chemical company with executive offices in London and incorporated in the Netherlands.
| Issuer: | LYB International Finance III, LLC
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| Guarantor: | LyondellBasell Industries NV
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| Amount: | $750 million
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| Issue: | Guaranteed notes
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| Maturity: | March 1, 2034
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| Bookrunners: | Citigroup Global Markets Inc., Mizuho Securities USA LLC (leads), Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and Wells Fargo Securities, LLC
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| Co-managers: | Academy Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank, TD Securities (USA) LLC and UniCredit Capital Markets LLC
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Gibson, Dunn & Crutcher LLP (U.S. law) and De Brauw Blackstone Westbroek NV (Dutch law)
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Coupon: | 5.5%
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| Price: | 99.234
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| Yield: | 5.601%
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| Spread: | Treasuries plus 130 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Dec. 1, 2033, then a par call; for taxation reasons at par
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| Change-of-control: | At 101
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| Trade date: | Feb. 26
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| Settlement date: | Feb. 28
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Cusip: | 50249AAM5
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