Lyondell completes tender offer for 9 5/8% notes, buying $762 million

By Laura Lutz

Des Moines, Sept. 20 - Lyondell Chemical Co. announced the successful completion of the tender offer for its 9 5/8% series A senior secured notes due 2007.

In total, Lyondell said it had accepted tenders for about $762 million, or 90%, of the $849.16 million principal amount of the notes that was outstanding at the beginning of the offer.

The offer expired at midnight ET on Oct. 2.

As previously reported, he company had accepted tenders of $760 million of the notes following the Sept. 18 consent deadline of the offer.

The company paid $1,023.78 per $1,000 principal amount, plus accrued interest, for notes tendered before the consent deadline.

The payout is based on the present value of the $1,000 repayment price at maturity on May 1, 2007, discounted using the yield to maturity of the 3.625% Treasury due April 30, 2007, which was 5.11% on Sept. 18, plus 50 basis points, less accrued interest up to but excluding the payment date.

Notes tendered after the consent deadline received the same amount, less a $30.00 consent payment.

The consents it received allowed Lyondell to eliminate substantially all the restrictive covenants from the note indenture as well as amend the events of default and certain other provisions.

J.P. Morgan Securities Inc. was the dealer manager and solicitation agent (call collect 212 270-7407 or 800 245-8812). The information agent was D.F. King & Co., Inc. (800 758-5378 or call collect 212 269-5550).

Lyondell is a Houston-based manufacturer of chemicals and gasoline-blending components.

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