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LyondellBasell Prices $1 Billion in Public Offering Guaranteed Notes

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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.

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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.

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