Levels appear to be weakening for Lyondell Chemical on industry softness. Dealers said the Houston-based polymers and petrochemicals manufacturer topped off at 104 two months ago, but it has slowly been coming down since. A trade early in the week came in at 103 3/8, followed by a 102 1/16 price in a later deal. A dealer said the company recently came out with weaker than expected earnings. He predicts levels will continue to weaken. "There's more downside than upside," he said. Another dealer agreed. "There's just concern about the petrochemical sector," he said, noting that raw material prices are high now. Calls to a company spokeswoman were not returned by press time.
The sector has struggled since last fall, with dealers blaming everything from rising energy costs to the inflated euro to market saturation. The company has a $1 billion deal that breaks down into two tranches and expires in 2003. J.P. Morgan Chase, Salomon Smith Barney, Credit Suisse First Boston and Bank of America are the lead arrangers, according to Capital DATA Loanware. Pricing is 37Ž 8% over LIBOR.