HOUSTON, Jan. 14 /PRNewswire/ -- In conjunction with the previously announced agreement to sell its polyols business to Bayer, Lyondell Chemical Company (NYSE: LYO) announced today that it is requesting an amendment to its existing $7 billion Senior Secured Credit Facility.

While Lyondell is in compliance with all of its covenants, the Company is seeking to increase its operating flexibility through the proposed covenant changes. Several factors are contributing to the amendment request, including continued trough conditions in the petrochemical industry and cutbacks of Venezuelan heavy crude oil allocation to the Company's LYONDELL-CITGO Refining joint venture.

Commenting on the proposed covenant changes, Robert T. Blakely, Executive Vice President and Chief Financial Officer of Lyondell said "Our financial objective remains unchanged. We remain fully committed to significant debt reduction and returning to an investment grade credit rating. The proposed amendment will provide added financial and operating flexibility in the near- term. The proceeds from the sale of the polyols business, expected to be in excess of $2 billion, will be used exclusively to pay down bank debt. Further debt reduction is expected to continue through improvements in operating cash flow and proceeds from additional asset sales."

Lyondell expects to complete the amendment process by early February 2000 and expects to close the Bayer transaction during the first half of 2000.

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 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 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.
SOURCE Lyondell Chemical Company
Web site: http: //www.lyondell.com
CONTACT: media, Jackie Wilson, 713-652-4596, or investors, Sami Ahmad, 713-309-7141, both of Lyondell Chemical Company