HOUSTON, June 18 /PRNewswire-FirstCall/ -- Lyondell Chemical Company (NYSE: LYO) announced today that, as part of a financing plan, it will offer to the public 7,000,000 shares of common stock. Additionally, Lyondell will offer $275 million of 10-year, senior secured notes. Funds will be used to prepay approximately $200 million of the $621 million of outstanding term loans under Lyondell's credit facility. Lyondell intends to retain the remaining proceeds for general corporate purposes.

The common stock and senior secured notes offerings are part of a financing plan, which includes a proposed amendment to Lyondell's secured term loan and revolving credit facilities. The amendment will extend the maturity of the revolving credit facility and make certain financial ratio requirements less restrictive. In addition, the amendment will reduce the size of the revolving credit facility to $350 million. As a whole, the financing plan substantially maintains Lyondell's current levels of liquidity and net debt. Lyondell anticipates closing the entire financing plan in early July.

The financing plan is not contingent on the completion of the consent solicitation announced today by Lyondell.

Lyondell currently has approximately 118 million shares of common stock outstanding.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any offering of the securities will only be made by means of a prospectus.

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