Upsized Lyondell $2.75 billion dollar/euro bond deal expected to price Wednesday

By Paul Deckelman

New York, March 23 - Lyondell Chemical Co. was heard by high yield syndicate sources to have upsized its already massive dual-currency offering of 7.5-year senior secured notes by another $500 million on Tuesday to $2.75 billion equivalent, getting ready for an expected Wednesday afternoon pricing.

Books in the United States close at 10 a.m. ET on Wednesday.

The company is planning to price some bonds denominated in U.S. dollars and some in euros. Tranche sizes have not been set yet.

Price talk on the dollar portion of the deal is for a yield of 8% to 8¼%, with an anticipated discount of between zero and 1 percentage point. Talk on the euro portion is for a yield between 8 1/8% and 8 3/8%, also with a discount between zero and 1 percentage point, the sources said.

Bank of America Merrill Lynch, UBS Investment Bank, Barclays Capital, Citigroup, Credit Suisse, Deutsche Bank, JP Morgan, Morgan Stanley and Wells Fargo Securities are joint bookrunners for the deal, which is coming in the Rule 144A with registration rights format.

The Houston-based chemical company - a unit of Netherlands-based LyondellBassel -- plans to use the deal's proceeds, along with proceeds of new bank facility, to finance the company's emergence from bankruptcy.

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