HOUSTON, Nov. 7 /PRNewswire/ -- Equistar Chemicals, LP announced today that it is soliciting consents from certain long-term debtholders to release Lyondell as a primary obligor and to amend the debt indentures to appropriately reflect Equistar's organizational structure as a partnership. The consent affects $400 million of Equistar's debt.

The debt securities affected were originally issued by Lyondell Chemical Company (NYSE: LYO) and were assumed by Equistar in connection with the partnership's formation. Since Equistar's formation, both Equistar and Lyondell have served as primary obligors under the debt securities.

Under the terms of the proposal, Equistar would continue to be the primary obligor, while Lyondell would be released as a primary obligor. However, Lyondell will continue to guarantee Equistar's debt payment obligations under the affected debt indentures. Consents are being solicited from holders of Equistar's 6.50% Notes Due 2006, its 7.55% Debentures Due 2026 and its 9.125% Notes Due 2002. The solicitation is scheduled to expire at 5:00 P.M. Eastern Time, November 17, 2000, unless extended. Consents representing at least 50 percent of the aggregate principal amount of each of the three series of debt securities are required for adoption of the proposed release and amendments.

Subject to the satisfaction of conditions, Equistar will pay a consent payment of $2.50 for each $1,000 principal amount of debt securities to consenting holders. The terms of the solicitation are described in the Consent Solicitation Statement, which may be obtained from ChaseMellon Shareholder Services, the information agent, at 866-293-6620 (toll free). Salomon Smith Barney is the solicitation agent for the consent solicitation, and may be contacted at 800-558-3745 (toll free), attention Liability Management Group.

Equistar Chemicals, LP is a joint venture among Lyondell Chemical Company, Millennium Chemicals Inc. and Occidental Petroleum Corporation that includes petrochemicals and polymers businesses. Equistar is a leading producer of ethylene and propylene, as well as polyethylene and polypropylene resins. Company headquarters is in Houston, Texas.
SOURCE Equistar Chemicals, LP
CONTACT: media, Marvin Brown, 713-309-2643, or investors, Sami Ahmad, 713-309-7141, both for Equistar Chemicals, LP