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LyondellBasell Announces Public Offering of Guaranteed Notes

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LyondellBasell Industries N.V. (LYB - Free Report) recently announced that its fully-owned subsidiary, LYB International Finance II B.V., has priced a public offering of Eur 500 million total principal amount of 1.625% guaranteed notes due 2031 and Eur 500 million total principal amount of 0.875% guaranteed notes due 2026.    

LyondellBasell stated that the notes will be fully and unconditionally guaranteed by the company. LyondellBasell expects the offering to close on Sep 17, 2019, which is subject to customary closing conditions.

Moreover, the company plans to use the net proceeds of the offering to repay $1,000-million outstanding debt under its $4,000 million three-year term loan facility as well as a portion of its outstanding short-term debt (including commercial paper).

Shares of LyondellBasell have lost nearly 19.2% in the past year compared with the industry’s decline of 38.2%.

 



In second-quarter 2019 earnings call, LyondellBasell stated that it anticipates low-cost natural gas liquid feedstocks to continue driving strong chain margin in the Olefins & Polyolefins Americas unit as well as Oxyfuels and Related Products business. The company intends to initiate operations in the Hyperzone HDPE plant during the second half of 2019.

Zacks Rank & Key Picks

LyondellBasell currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Alamos Gold Inc (AGI - Free Report) and Arconic Inc (ARNC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 71.3% in the past year.

Alamos Gold has projected earnings growth rate of 320% for the current year. The company’s shares have rallied 42.5% in a year’s time.

Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 18.5% in the past year.

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