UpdateLyondell Chem to raise $3.25bn via private placement, loans

12 March 2010 05:21  [Source: ICIS news]

(adds details on creditors’ support, deadline for exercising rights offering)

SINGAPORE (ICIS news)--Lyondell Chemical plans to raise $3.25bn (€2.37bn) through a combination of private placement of secured notes and term loans as it prepares to emerge from bankruptcy protection, its parent company LyondellBasell said on Friday.

The fresh funds, along with proceeds from the company’s $2.8bn rights offering and those from a new European securitization facility, would be used to partly repay the company’s existing debts, the company said.

LyondellBasell was formed on 20 December 2007 from the merger of Lyondell Chemical Co and Basell.

On Thursday, the US bankruptcy court approved a string of motions crucial to Lyondell's reorganisation plan, including the company's $450m proposed partial settlement with creditors that has to do with the company’s merger with Basell, and its equity offering.

LyondellBasell, whose US operations filed for bankruptcy protection in January 2009, has until 15 April to gather enough support for its reorganisation plan, based on court documents.

In a separate statement, LyondellBasell said that some of its creditors had agreed to support the proposed reorganisation of the company.

Voting on the plan, as well as participation to the $2.8bn rights offering started on 11 March upon getting the court approvals, the company said.

Rights should be exercised on 15 April, LyondellBasell said.

Lyondell could present its plan to the US court as early as 23 April for confirmation and finally exit bankruptcy.

With additional reporting by Nurluqman Suratman

($1 = €0.73)

For more on Lyondell, visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections


By: Pearl Bantillo
+65 6780 4359



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index