LyondellBasell Issues $1.5 Billion of Bonds in First 2013 Sale

LyondellBasell Industries NV (LYB), the world’s largest producer of polypropylene, sold $1.5 billion of bonds in its first offering in more than a year.

The company issued $750 million each of 4 percent, 10-year debt to yield 160 basis points more than similar-maturity Treasuries and 5.25 percent, 30-year securities at a relative yield of 185 basis points, according to data compiled by Bloomberg. Proceeds will be used for repurchasing shares and general corporate purposes, according to a person with knowledge of the transaction, who asked not to be identified, citing lack of authorization to speak publicly.

The company last sold debt in June 2012, issuing $4 billion in three parts, including $1 billion of 5.75 percent debentures due April 2024, according to data compiled by Bloomberg. The bonds traded at 110 cents on the dollar yesterday to yield 4.56 percent, with a spread to Treasuries of 189.9 basis points, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

JPMorgan Chase & Co. and Morgan Stanley managed the offering for the Rotterdam, Netherlands-based company, Bloomberg data show. The bonds are rated Baa2 by Moody’s Investors Service.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story Alan Goldstein at agoldstein5@bloomberg.net

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