New Issue: Westlake Chemical sells $380 million eight-year notes to yield 8¾%

By Paul A. Harris

St. Louis, July 21 - Westlake Chemical Corp. sold a slightly downsized offering of $380 million senior notes due July 15, 2011 (Ba3/B+) at par Monday to yield 8¾%, according to a syndicate source.

Price talk was 8 ¾%-9% and the deal was decreased from $400 million.

Credit Suisse First Boston, Bank of America Securities, Deutsche Bank Securities and JP Morgan were joint bookrunners on the Rule 144A offering (with registration rights). Citigroup, Scotia Capital, Credit Lyonnais and CIBC World Markets were co-managers.

Proceeds will be used to refinance existing debt.

The issuer is a Houston petrochemical company.

Issuer:	Westlake Chemical Corp.
Amount:	$380 million (decreased from the $400 million)
Maturity:	July 15, 2011
Security description:	Senior notes
Bookrunners:	Credit Suisse First Boston, Bank of America Securities, Deutsche Bank Securities, JP Morgan
Co-managers:	Citigroup, Scotia Capital, Credit Lyonnais, CIBC World Markets
Coupon:	8¾%
Price:	Par
Yield:	8¾%
Spread:	492 basis points over 5% Treasury due August, 2011
Call Features:	Callable after July 15, 2007 at 104.375, then 102.917, 101.458, declining to par on July 15, 2010 thereafter
Equity Clawback:	Until July 15, 2007 at 108.75 for up to 35%
Settlement Date:	July 31, 2003 (T+8)
Ratings:	Moody's: Ba3
	Standard & Poor's B+
Rule 144A Cusip:	960413AB8
Price talk:	8¾%-9%

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