Planned Note Nudges Lyondell 'E' Back Above Par

  • 01 Dec 2002
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Lyondell Chemical's bank debt popped up above par on the buzz that the company would issue senior secured notes to take down part of the company's "E" term loan. The "E" loan was being bid in the 100 1/2 range, but it could not be determined if any paper had changed hands. The loan was being bid in the 98-99 range prior to the news. A non-call provision on the term loan "E" expired last May, but the "E" still has call protection at 102. "I expect Lyondell to pay down about three-quarters of the loan, at 102," said a buysider.

The $337 million of senior notes bear a coupon of 91/ 2%, mature in 2008 and are priced to yield 10%. A substantial portion will be used to pay down the company's approximately $418 million term loan. Doug Pike, director of investor relations at Lyondell, said that the company could not comment given the private nature of the transaction.

Lyondell is the latest name to tap the high-yield bond market. Two weeks ago Allied Waste Industries secured a $75 million tack-on to its recent $300 million senior note issue. In addition, Owens-Illinois also completed an offering of 10-year notes that was upsized to $450 million from an intended $300 million. In both cases, proceeds from the offerings were used to pay down a portion of the companies' bank debt.

  • 01 Dec 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 1,284 2 30.09
2 Barclays 633 1 14.82
3 BNP Paribas 509 1 11.91
4 Citi 467 1 10.94
5 Morgan Stanley 455 1 10.66

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4 JPMorgan 7,225.34 25 9.54%
5 Wells Fargo Securities 6,258.35 24 8.26%