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

By Susanna Moon

Chicago, Dec. 11 – LyondellBasell Industries NV said it received the needed consents to amend three series of its notes in the two concurrent solicitations that ran until 5 p.m. ET on Dec. 10.

As a result, LyondellBasell executed a supplemental indenture incorporating the amendments to each notes indenture, which will become operative when the consent fee is paid Dec. 14, according to a company press release.

As announced Dec. 1, LyondellBasell sought to amend its outstanding 5% senior notes due 2019, 6% senior notes due 2021 and 5¾% senior notes due 2024. The outstanding amount was $1 billion principal amount for the 2021 notes and the 2024 notes and $2 billion principal amount for the 2019 notes.

LyondellBasell sought to eliminate restrictions on debt of some subsidiaries of the company and requirements that some future subsidiaries guarantee the notes.

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

As previously announced, the company solicited 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.

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

Holders needed to be of record as of 5 p.m. ET on Nov. 30.

LyondellBasell made each consent solicitation concurrently with the other and could have extended, terminated or amended one consent solicitation without affecting the other consent solicitation.

“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 company said when announcing the solicitations.

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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