Lyondell Chemical announced last week that it would use $200 million of the proceeds from a $275 million offering of 10-year senior secured notes and an offering of seven million shares of common stock to pay down existing indebtedness under the company's term loans. Although the name was not changing hands, traders quoted the "E" term loan at 101 3/4 102 1/2, up from the 100 1/2 101 level two weeks ago. The loan has a call protection of 102.
Two weeks ago, market players were buzzing about a possible bond deal as the company filed a shelf registration for up to $3.335 billion in debt and equity securities. That move, combined with a red-hot bond market and the expiration of the no-call provision on the company's "E" term loan last month, sparked investor speculation of new financing. The $850 million loan, currently priced at LIBOR plus 43/ 8%, is set to mature in June 2006 (LMW, 6/9). Doug Pike, company spokesman, could not be reached for comment.