HOUSTON, June 26 /PRNewswire-FirstCall/ -- Lyondell Chemical Company (NYSE: LYO) today announced it will sell $278 million of 10-year, 11.125% senior secured notes in an underwritten offering as part of a financing plan announced last week. The notes will be priced at 99.248% to yield 11.25%. The notes mature July 15, 2012, and are redeemable by Lyondell beginning July 15, 2007.

Lyondell will use the net proceeds of the offering to prepay approximately $200 million of the $621 million of outstanding term loans under Lyondell's credit facility. Lyondell intends to retain the remaining net proceeds for working capital and general corporate purposes. The offering is expected to close July 2, 2002.

The underwriters are Salomon Smith Barney Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc., Credit Suisse First Boston Corporation (which are joint book-running managers) and Scotia Capital (USA) Inc. (which is a co-manager).

Any offering shall be made only by means of a final prospectus. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any security, nor will there be any sale of any such security in any state in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such state.

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
Web site: http: //www.lyondell.com
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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
CAPTION: LYOLOGO LYONDELL LOGO Lyondell Logo. (PRNewsFoto)[PM] HOUSTON, TX USA 09/21/2000