01—Abstract
Summary
Summary of the 8-K filed July 18, 2024. Cited figures are marked; the original filing is the authoritative source.
On July 17, 2024, LyondellBasell Industries N.V. and its wholly owned subsidiary LYB Americas Finance Company LLC, as Borrowers, entered into a Third Amended and Restated Credit Agreement with various lenders, Citibank, N.A. as Administrative Agent, and Wells Fargo Bank, National Association as Syndication Agent.
The agreement provides a $3.75 billiona senior unsecured revolving credit facility maturing July 17, 2029, allowing euro and dollar denominated loans, plus sublimits for letters of credit and swing line loans. The facility is maintained for general corporate purposes and amends and restates the prior $3.25 billion five-year credit agreement dated November 23, 2021. The agreement requires the Company to maintain a maximum consolidated leverage ratio and includes restrictive covenants on additional indebtedness (including secured and subsidiary indebtedness) and on mergers and asset sales.
It also contains customary representations, warranties, and events of default, including payment defaults, covenant violations, cross acceleration and cross payment default, bankruptcy events, material monetary judgments, ERISA events, and changes of control. The filing is reported under Item 1.01 (Entry into a Material Definitive Agreement) and Item 2.03 (Creation of a Direct Financial Obligation), with the full agreement filed as Exhibit 10.1. The summary in the filing is qualified in its entirety by that exhibit.
02—Key points
Key Highlights
- Entered a Third Amended and Restated Credit Agreement on July 17, 2024, providing a $3.75 billion senior unsecured revolving credit facility.
- The facility matures on July 17, 2029, and permits euro and dollar denominated loans to the Company and the Co-Borrower.
- The new agreement amends and restates the prior $3.25 billion five-year credit agreement dated November 23, 2021.
- The facility is maintained for general corporate purposes and includes sublimits for letters of credit and swing line loans.
- The Company must maintain a maximum consolidated leverage ratio and is subject to restrictive covenants on additional indebtedness and on mergers and asset sales.
- Events of default include payment defaults, covenant violations, cross acceleration and cross payment default, bankruptcy events, and changes of control.
- Citibank, N.A. serves as Administrative Agent and Wells Fargo Bank, National Association serves as Syndication Agent.
03—Questions
Frequently Asked Questions
What is the size and maturity of the new credit facility?
The Amended and Restated Credit Agreement provides for a $3.75 billion senior unsecured revolving credit facility that matures on July 17, 2029.
Who are the borrowers under the agreement?
The borrowers are LyondellBasell Industries N.V. (the Company) and LYB Americas Finance Company LLC, a wholly owned subsidiary of the Company acting as Co-Borrower.
What does the new agreement replace?
It amends and restates the previously reported $3.25 billion five-year credit agreement dated as of November 23, 2021.
What financial covenants and restrictions apply?
The Company must maintain a maximum consolidated leverage ratio and is subject to restrictive covenants on additional indebtedness, including secured and subsidiary indebtedness, and on mergers and sales of assets.
What is the intended use of the facility?
The facility is maintained for general corporate purposes.
04—Continue