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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): APRIL 19, 1999.
LYONDELL CHEMICAL COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-10145 95-4160558
(Commission File Number) (I.R.S. Employer Identification No.)
1221 MCKINNEY STREET
ONE HOUSTON CENTER, SUITE 1600
HOUSTON, TEXAS 77010
(Address of principal executive offices) (Zip Code)
(713) 652-7200
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
In a press release dated April 19, 1999, Lyondell Chemical Company
("Lyondell") announced that it has received the approval of its lenders for a
revised refinancing plan to address Lyondell's near-term debt repayment
requirements under its credit facility. Lyondell also announced its intention
during the second quarter of 1999 to (1) issue $500 million of senior
subordinated notes and $1 billion of senior secured notes through a private
offering solely to qualified institutional buyers, (2) issue approximately 35
million shares of its common stock in an underwritten public offering, and (3)
arrange a new $750 million tranche under its existing credit facility. The text
of the press release is filed as an exhibit to this Current Report on Form 8-K.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
Exhibit Document
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99.1 -- Press Release of Lyondell Chemical Company, dated April 19, 1999.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LYONDELL CHEMICAL COMPANY
By: /s/ EDWARD W. RICH
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Edward W. Rich
Vice President, Finance and Treasurer
Date: April 21, 1999
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EXHIBIT 99.1
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Lyondell Receives Approval for Revised Refinancing Plan
HOUSTON, April 19, 1999 -- Lyondell Chemical Company (NYSE: LYO) has received
the approval of its lenders for a revised refinancing plan that will more fully
address the Company's near-term debt repayment requirements.
Under the revised plan, announced by Lyondell on April 12, the company plans to
issue $2.75 billion of securities versus $1.5 billion with the original plan.
Under the terms of the new plan, Lyondell intends to issue approximately 35
million shares of common stock, $500 million of senior subordinated notes and $1
billion of senior secured notes. The securities will be issued this quarter. In
addition, the Company plans to arrange a new tranche of approximately $750
million under its existing bank credit facility.
This will enable Lyondell to retire all of the bank debt (Tranche C) maturing
June 30, 1999 and pay off $1.5 billion of the $2 billion (Tranche D) bank debt
maturing June 30, 2000. Sources available to pay off the remaining $500 million
include cash flow from operations, the refinancing of the company's LYONDELL-
CITGO Refining venture, working capital reductions or returning to the capital
markets.
The common stock is expected to be sold in an underwritten public offering. The
debt portion of the plan will include new senior secured notes and senior
subordinated notes that will be offered only to qualified institutional buyers.
Such notes have not been and will not be registered under the Securities Act of
1933 and may not be offered or sold in the United States absent registration or
an applicable exemption from registration.
Lyondell Chemical Company, with headquarters in Houston, Texas, is the world's
largest producer of propylene oxide (PO); the world's number two supplier of
polyols and TDI (toluene diisocyanate); a leading producer of propylene glycol;
a leading producer of other PO derivatives such as BDO (butanediol) and PGE
(propylene glycol ether); and a producer of styrene monomer and MTBE as co-
products of PO production.
Through its 41% interest in Equistar Chemicals, LP, Lyondell is also the largest
producer of ethylene, propylene and polyethylene in North America and a leading
producer of high value-added specialty polymers, color concentrates and
polymeric powder.
Through its 58.75% interest in LYONDELL-CITGO Refining LP., Lyondell is one of
the largest and most profitable refiners in the United States, processing very
heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.
Lyondell is the third largest methanol producer in the U.S., through its 75%
interest in Lyondell Methanol Company, L.P.
