Some market players say a bond deal may be ahead for Lyondell Chemical. The company recently filed a shelf registration for up to $3.335 billion in debt or equity securities. That move, combined with a red-hot bond market and the non-call provision on the company's term loan "E" expiring last month, have investors looking for a bond deal that is going to pay down some of the company's bank debt.
Lyondell's term loan "E" has a call protection of 102, although the paper was being quoted at 100 1/2 101. The $850 million loan, currently priced at LIBOR plus 43/ 8%, is set to mature in June 2006. One dealer said that the company is having a bank meeting next week. Doug Pike, the company's recently appointed director of investor relations, could not comment on whether or not a bond deal was in the works.