LyondellBasell begins accruing penalty interest on 8%, 11% notes

By Angela McDaniels

Tacoma, Wash., Aug. 15 - LyondellBasell Industries NV's 8% senior secured notes due 2017 and 11% senior secured notes due 2018 began accruing penalty interest on May 4, according to its 10-Q report for the second quarter filed with the Securities and Exchange Commission.

Under its registration rights agreements, the company is obligated to conduct an exchange offer for the 8% notes and register the resale of the 11% notes held by affiliates with the SEC. The deadline for the registration statements to become effective was May 3.

The interest rate increase is 25 basis points for the first 90 days that the registration statements are not effective. This will increase by an additional 25 bps for each additional 90 days, up to a maximum of 100 bps.

The company said it does not expect the amount of penalties that it will ultimately pay to be material.

LyondellBasell Industries is a chemical company based in Rotterdam, the Netherlands.

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