Millennium Chemicals (NYSE:MCH)
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Equistar Announces Financing Plan
HOUSTON, Nov. 17 /PRNewswire-FirstCall/ -- Equistar Chemicals, LP, announced
today that, as part of a financing plan, it is commencing a private placement
offering of $200 million of senior notes due in 2011. Equistar will use $173
million of the net proceeds to repay in full the term loans outstanding under
Equistar's credit facility and the remaining net proceeds to repay borrowings
outstanding under Equistar's revolving credit facility. The offering is
expected to close later this month.
In addition to the senior notes offering, Equistar is in the process of
implementing a new $450 million, four-year accounts receivable sales facility
and a new $250 million, four-year inventory-based revolving credit facility. The
new facilities will replace Equistar's existing $100 million accounts receivable
sales agreement and its existing $354 million revolving credit facility.
Equistar anticipates closing the new facilities in December 2003, subject to
completion of definitive documentation and other customary conditions.
The senior notes will be offered only to qualified institutional buyers and
other eligible purchasers in a private placement offering. The notes will not
be registered under the Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration.
Equistar Chemicals, LP, headquartered in Houston, Texas, is a joint venture
between Lyondell Chemical Company (NYSE:LYO) and Millennium Chemicals Inc.
(NYSE:MCH).
FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical facts
are forward-looking statements that are subject to risks and uncertainties.
Actual results could differ materially, based on factors including, but not
limited to: the cyclical nature of the chemical industry; availability, cost and
volatility of raw materials and utilities; governmental regulatory actions and
political unrest; global economic conditions; industry production capacity and
operating rates; the supply/demand balance for Equistar's products; competitive
products and pricing pressures; access to capital markets; technological
developments and other risk factors. For more detailed information about the
factors that could cause actual results to differ materially, please refer to
Equistar's Annual Report on Form 10-K for the year ended December 31, 2002,
which was filed with the Securities and Exchange Commission in March 2003, and
Equistar's Quarterly Report on Form 10-Q for the quarter ended September 30,
2003, which was filed in November 2003.
DATASOURCE: Equistar Chemicals, LP
CONTACT: media, Susan Moore, +1-713-309-4645, or investors, Doug Pike,
+1-713-309-7141, both of Equistar Chemicals, LP