HOUSTON, June 18 /PRNewswire-FirstCall/ -- Lyondell Chemical Company (NYSE: LYO) announced today that it will solicit consents to certain proposed amendments to the indentures related to four series of its debt securities. The debt securities are Lyondell's 9.50% Senior Secured Notes Due 2008, its 9.625% Senior Secured Notes, Series A, Due 2007, its 9.875% Senior Secured Notes, Series B, Due 2007 and its 10.875% Senior Subordinated Notes Due 2009.
The financing plan announced today by Lyondell is not contingent on the completion of the consent solicitation.
One of the amendments would revise an existing exception to the "Restricted Payments" limitation in the indentures. The existing exception allows Lyondell to pay its current $0.90 per share annual dividend on all shares of its common stock that are currently outstanding and a limited number of additional shares that may be issued. The amendment would permit Lyondell to pay that dividend on all those shares and on all additional shares of common stock that may be issued from time to time in the future.
Another amendment would amend the respective indentures for the senior secured notes to allow the proceeds from asset sales by certain Lyondell subsidiaries that are not guarantors of the senior secured notes to be used to repay indebtedness of such subsidiaries rather than indebtedness of Lyondell or other subsidiaries of Lyondell that are guarantors of those notes. Additionally, Lyondell seeks the consent of the holders of the notes to each of the indentures to amend certain provisions regarding the treatment of certain joint ventures such as Equistar Chemicals, LP as a Subsidiary or a Restricted Subsidiary under the indentures.
This solicitation is expected to commence June 19, 2002 and remain open until 5:00 p.m., New York City time, on July 2, 2002 (the "Expiration Time"), unless extended. Holders of record of the debt securities as of June 18, 2002 are entitled to consent to the applicable proposed amendments. Adoption of the proposed amendments, and payment of the consent payment, is conditioned upon, among other things, the receipt of the consent of holders of not less than a majority in aggregate principal amount of each of the four series of debt securities.
Subject to the satisfaction of conditions, Lyondell will pay a consent payment of $2.50 for each $1,000 principal amount of debt securities with respect to which a consent to the proposed amendments is received and not revoked prior to the Expiration Time.
The terms of the consent solicitation will be more fully described in Lyondell's Consent Solicitation Statement and related documents. For additional information regarding consent delivery procedures and the conditions of the consent solicitation, reference is made to the Consent Solicitation Statement and related documents. Questions concerning the consent solicitation and requests for consent solicitation documents should be directed to Salomon Smith Barney, the Solicitation Agent for the consent solicitation, 390 Greenwich Street, New York, New York 10013, Attention: Liability Management Group, at (800) 558-3745 (toll free).
Consents to the amendments should be sent directly to The Bank of New York, the Tabulation Agent for the consent solicitation, Reorganization Unit, 15 Broad Street - 16th Floor, New York, New York 10007, Attention: Santino Ginocchietti at (212) 235-2363 (tel) and (212) 235-2261 (fax).
Lyondell Chemical Company, (www.lyondell.com ), headquartered in Houston, Texas, is the world's largest producer of propylene oxide (PO); the world's number three supplier of 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 also is one of the largest producers of ethylene, propylene and polyethylene in North America and a leading producer of polypropylene, ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder. Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest refiners in the United States, processing extra heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.
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SOURCE Lyondell Chemical Company
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CONTACT: media, Anne M. Knisely, +1-713-309-2643, or investors, Douglas J. Pike, +1-713-309-7141, both of Lyondell Chemical Company
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