LyondellBasell seeks consents to amend 5% notes, 6% notes, 5¾% notes

By Susanna Moon

Chicago, Dec. 1 – LyondellBasell Industries NV said it began two concurrent consent solicitations to amend its outstanding 5% senior notes due 2019, 6% senior notes due 2021 and 5¾% senior notes due 2024.

LyondellBasell is seeking to eliminate restrictions on debt of some subsidiaries of the company and requirements that some future subsidiaries guarantee the notes, according to a company press release.

The company said it views these provisions as carryovers or remnants from the period prior to its senior notes achieving investment-grade ratings.

The consent solicitations will end at 5 p.m. ET on Dec. 10. Holders must be of record as of 5 p.m. ET on Nov. 30.

The company is soliciting consents from holders of a majority of the outstanding 2021 notes and from holders of a majority of the outstanding 2019 notes and 2024 notes, voting as a single class, the release noted.

Holders who deliver consents in favor of the amendments will receive a cash payment of $1.00 for each $1,000 principal amount of notes.

LyondellBasell said it is making each consent solicitation concurrently with the other and may extend, terminate or amend one consent solicitation without affecting the other consent solicitation.

The outstanding amount is $1 billion principal amount for the 2021 notes and the 2024 notes and $2 billion principal amount for the 2019 notes.

“If adopted, the amendments will align certain covenants in the indentures with those in the company’s most recent senior notes indenture, resulting in more consistent covenants across the company’s public debt portfolio and affording the company greater financial flexibility and easing administration of its public debt portfolio,” the press release noted.

The lead solicitation agent is Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955 (collect), and the co-solicitation agents are Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC.

Global Bondholder Services Corp. (866 470-4500 or 212 430-3774) is the information agent and tabulation agent.

The Houston-based chemical company has executive offices in London and is incorporated in the Netherlands.

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