Fitch gives Westlake Chemical bonds BBB

Fitch Ratings said it assigned a BBB rating to Westlake Chemical Corp.’s reoffering of $250 million unsecured revenue bonds due 2032.

Proceeds, together with cash on hand, credit facility borrowings, and the recent $500 million unsecured notes issuance, will be used to fund the redemption of the $688 million 2021 and $450 million 2023 senior unsecured notes on or after Feb. 15, 2018 and May 15, 2018, respectively.

The revenue bonds will rank pari passu with Westlake's existing unsecured debt.

“Management intends to temporarily fund a portion of the redemption with the credit facility and repay borrowings with excess cash flows. The transaction is expected to help lower interest costs, reduce gross debt, improve leverage metrics, and further extend the maturity profile,” Fitch said in a news release.

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