Lyondell Chemical Company's "E" tranche traded just above 103 last week, down slightly from 103 1/2 about two months ago. "It's actually come off. The call protection steps down in a few months, and people are anticipating it," said a dealer. The company has call protection at 103 through June then 102 through June of 2002. The Houston-based company makes polymers that are used in synthetic trash bags, containers and sports equipment. Dealers have said the company has been an exception to the recent hit in the chemical sector.
Lyondell's "E" tranche is a $750 million add-on that is used to help pay down its "C" and most of its "D" term loans (LMW, 4/17/00). 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 37/8 % over LIBOR.