HOUSTON – Chemical giant LyondellBasell Industries announced on Monday a major step in its financial strategy, pricing a public offering of guaranteed notes worth $1.5 billion through its subsidiary. The move, aimed at bolstering general corporate purposes including potential debt repayment, underscores the company's ongoing efforts to manage its balance sheet amid a shifting economic landscape.
The offering, detailed in a press release from the company, involves $500 million in 5.125% guaranteed notes due in 2031 and $1 billion in 5.875% guaranteed notes due in 2036. These notes are fully guaranteed by LyondellBasell itself, providing investors with added security. The transaction is set to close on November 13, 2025, pending standard closing conditions, according to the announcement.
LyondellBasell, traded on the New York Stock Exchange under the ticker LYB, described the net proceeds as earmarked for general corporate purposes, which could include repaying existing guaranteed notes maturing in 2026 and 2027. This flexibility allows the company to address upcoming obligations while maintaining operational agility in a competitive industry.
In the press release, the company emphasized its position in the global market. "We are LyondellBasell (NYSE:LYB) – a leader in the global chemical industry creating solutions for everyday sustainable living," the statement read. It highlighted the firm's focus on advanced technology and investments to enable a circular and low-carbon economy, aiming to unlock value for customers, investors, and society.
As one of the world's largest producers of polymers and a leader in polyolefin technologies, LyondellBasell develops, manufactures, and markets products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. This broad portfolio positions the company at the forefront of efforts to address environmental challenges through innovation.
The offering is being managed by prominent financial institutions, with Citigroup Global Markets Inc., Deutsche Bank Securities Inc., and J.P. Morgan Securities LLC serving as joint book-running managers. Prospective investors are directed to review the preliminary prospectus supplement and accompanying documents filed with the Securities and Exchange Commission for full details.
The Offering is being made pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement has been filed, and a prospectus supplement relating to the Offering will be filed, with the SEC, to which this communication relates. Prospective investors should read the preliminary prospectus supplement and the accompanying prospectus included in the registration statement and other documents LyondellBasell has filed with the SEC relating to the Offering, copies of which may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, copies can be obtained by contacting the managers directly: Citigroup at 1-800-831-9146, Deutsche Bank at 1-800-503-4611, or J.P. Morgan at 1-212-834-4533. The press release explicitly notes that it does not constitute an offer to sell or a solicitation to buy the notes, and no such actions will occur in jurisdictions where they would be unlawful without proper registration.
This financial maneuver comes at a time when the chemical industry is navigating volatility in raw material prices, supply chain disruptions, and increasing regulatory pressures for sustainability. LyondellBasell, headquartered in Houston, has been actively pursuing strategies to reduce its carbon footprint and promote circular economy principles, aligning with global trends toward greener practices.
Forward-looking statements in the announcement caution that actual results could differ materially from expectations. Factors include market conditions, the company's ability to complete the offering and apply proceeds as planned, and compliance with debt covenants. Additional risks are outlined in LyondellBasell's Form 10-K for the year ended December 31, 2024, available on the company's investor page and the SEC website.
The statements in this release relating to matters that are not historical facts are forward-looking statements. Actual results could differ materially based on factors including, but not limited to, market conditions; our ability to complete the Offering and apply the net proceeds as described; and our ability to comply with debt covenants and to amend, extend, repay, service, and reduce our debt.
Industry analysts have noted that such offerings are common for large corporations like LyondellBasell to refinance debt at favorable rates, especially with interest rates fluctuating. The 5.125% rate for the 2031 notes and 5.875% for the 2036 notes reflect current market conditions, providing the company with long-term funding at competitive costs.
In the broader context, LyondellBasell's actions fit into a pattern of financial prudence. The company has previously engaged in similar debt issuances to support its operations and growth initiatives. For instance, its focus on polyolefin technologies has driven innovations in packaging, automotive parts, and medical supplies, contributing to its status as a key player in the sector.
Looking ahead, the successful closure of this offering could strengthen LyondellBasell's position in pursuing sustainable investments. With proceeds potentially directed toward debt repayment, the company may free up resources for research and development in low-carbon solutions, further solidifying its commitment to environmental goals.
Overall, this development highlights the dynamic nature of corporate finance in the chemical industry, where companies like LyondellBasell balance immediate financial needs with long-term strategic objectives. Investors and stakeholders will be watching closely as the offering closes later this week, potentially setting the tone for similar moves by peers in the sector.