LyondellBasell completes $1-billion notes issue, authorises dividend pay-out
15 November 2011
LyondellBasell Industries NV on Tuesday announced the completion of its $1 billion offering of 6 per cent senior notes due 2021. The company's supervisory board also authorised the management board to declare a special dividend of $4.50 per share, to be paid on 16 December.
The special dividend of approximately $2.6 billion will return value to shareholders and will be financed using a combination of existing cash and proceeds from a recent debt financing, the company said in a release.
LyondellBasell said the net proceeds from the offering of the notes, together with available cash, would be used to pay the special dividend.
The notes are guaranteed on a senior basis by, subject to certain exceptions, each existing and future wholly owned United States subsidiary of the company that is an issuer or co-issuer in respect of, or guarantees, any debt securities issued in the capital markets by the company or any subsidiary, the company said.
The notes were issued in a private placement to qualified institutional buyers in accordance with securities regulations, and to certain non-US persons in offshore transactions in accordance with the Act.
The notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the US without registration under the Securities Act or an applicable exemption from registration requirements, the company said.
The supervisory board has also authorised the company's management board to declare a quarterly dividend of $0.25 per share, an increase of $0.05 per share from the company's August 2011 dividend. The quarterly dividend also will be paid on 16 December to shareholders of record as of 25 November 2011, the release said.
LyondellBasell is one of the world's largest plastics, chemical and refining companies which manufactures products, including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels, at 58 sites in 18 countries.