LyondellBasell prices $1 billion guaranteed notes
On February 21, 2017, LyondellBasell (LYB) announced that LYB International Finance, a wholly owned subsidiary of LyondellBasell, priced its public offering of $1 billion in 3.5% notes due in 2027. These notes are fully guaranteed by LyondellBasell unconditionally. The offer is expected to close on March 2, 2017.
LyondellBasell is expected to redeem $1 billion aggregate principal amount of LYB’s 5.0% senior notes due 2019 from the proceedings it receives out of this new issue. This move could help LYB to reduce its interest expenses going forward.
LyondellBasell stock price movement for the week
For the week ended February 24, 2017, LYB closed at $92.43 and lost 0.5% for the week. LYB’s stock price traded 6.4% above the 100-day moving average price of $86.87, indicating an upward trend in the stock. On a year-to-date basis, LYB has moved up 7.8%. With a 14-day relative strength index (or RSI) of 50, LYB is neither overbought nor oversold. An RSI of 70 indicates that the stock is overbought and a score of 30 suggests that the stock is oversold. LYB’s 52-week low is $69.82, and its 52-week high is $97.64. LYB outperformed the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which lost 0.6% for the week ended February 24, 2017.
RTM has invested 4.1% of its holdings in LyondellBasell. The other top holdings of the fund include CF Industries (CF), Sherwin-Williams (SHW), and Newmont Mining (NEM), which have weights of 4.5%, 4.4%, and 4.3%, respectively, as of February 24, 2017.