CORRESP 1 filename1.htm corresp
(lyondellbasell LOGO)
 
 
August 16, 2011
VIA EDGAR AND OVERNIGHT MAIL
Ms. Pamela Long
Assistant Director
Securities and Exchange Commission
Division of Corporation Finance
100 F Street, N.E.
Washington, D.C. 20549
Re:   Lyondell Chemical Company
LyondellBasell Industries N.V.
Registration Statement on Form S-4
Filed June 22, 2011
File No. 333-175077
Dear Ms. Long:
     This letter supplements the Registration Statement on Form S-4 of LyondellBasell Industries N.V., a public company incorporated under Dutch law (“LyondellBasell”), Lyondell Chemical Company, a Delaware corporation (“LCC”) and the co-registrants named in the Registration Statement (as defined below) (together with LyondellBasell and LCC, the “Registrants”) with respect to offers to exchange (the “Exchange Offer”) up to $1,822,500,000 of LCC’s 8% Senior Secured Notes due 2017 (the “Outstanding Dollar Notes”) and up to €303,750,000 of LCC’s 8% Senior Secured Notes due 2017 (the “Outstanding Euro Notes” and, together with the Outstanding Dollar Notes, the “Outstanding Notes”), which were originally issued on April 8, 2010, for exchange dollar notes and exchange euro notes (collectively, the “Exchange Notes”) with terms materially identical to the Outstanding Dollar Notes (the “Exchange Dollar Notes”) and the Outstanding Euro Notes (the “Exchange Euro Notes” and, together with the Exchange Dollar Notes, the “Exchange Notes”) but which have been registered under the Securities Act of 1933, as amended. In connection with the above-referenced Registration Statement on Form S-4 (the “Registration Statement”), the Registrants hereby confirm and represent as follows:
     1. The Registrants are registering the Exchange Offer in reliance on the Staff’s position set forth in Shearman & Sterling, SEC No-Action Letter (available July 2, 1993), Morgan Stanley & Co. Incorporated, SEC No-Action Letter (available June 5, 1991), and Exxon Capital Holdings Corporation, SEC No-Action Letter (available May 13, 1988) (the “Exxon Capital Letter”).
 
 
LyondellBasell Industries N.V.
One Houston Center, Suite 700
1221 McKinney Street
Houston, TX 77010
P.O. Box 3646 (77253-3646)
USA

 

 

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     2. The Registrants have not entered into any arrangement or understanding with any person to distribute the Exchange Notes to be received in the Exchange Offer and, to the best of the Registrants’ information and belief, each person participating in the Exchange Offer is acquiring the Exchange Notes in its ordinary course of business and has no arrangement or understanding with any person to participate in the distribution of the Exchange Notes to be received in the Exchange Offer. In this regard, the Registrants will make each person participating in the Exchange Offer aware (through the prospectus or the letter of transmittal) that, if such person is tendering Outstanding Notes in the Exchange Offer with the intention of participating in any manner in a distribution of the Exchange Notes, such person (i) cannot rely on the Staff position enunciated in the Exxon Capital Letter or interpretative letters to similar effect and (ii) must comply with the registration and prospectus delivery requirements of the Securities Act of 1933, as amended (the “Securities Act”), in connection with a secondary resale transaction. The Registrants acknowledge that such a secondary resale transaction by such person participating in the Exchange Offer for the purpose of distributing the Exchange Notes should be covered by an effective registration statement containing the selling security holder information required by Item 507 of Regulation S-K.
     3. None of the Registrants nor any affiliate of the Registrants has entered into any arrangement or understanding with any broker-dealer to distribute the Exchange Notes.
     4. The Registrants will make each person participating in the Exchange Offer aware (through the prospectus or the letter of transmittal) that any broker-dealer that will receive Exchange Notes for its own account in exchange for Outstanding Notes that were acquired as a result of market-making activities or other trading activities may be a statutory underwriter and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Notes.
     5. The Registrants will include in the letter of transmittal to be executed by an exchange offeree in order to participate in the Exchange Offer a provision to the effect that if the exchange offeree is a broker-dealer holding Outstanding Notes acquired for its own account as a result of market-making activities or other trading activities, such broker-dealer will acknowledge that it will deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of Exchange Notes received in respect of such Outstanding Notes pursuant to the Exchange Offer. The letter of transmittal also will include a statement to the effect that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

 

 

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     Terms used and not otherwise defined in this letter have the meanings given such terms in the prospectus forming a part of the Registration Statement.
     If any additional supplemental information is required by the Staff, please contact Mr. Jeffery K. Malonson of Vinson & Elkins L.L.P at 713-758-3824.
         
  Very truly yours,

LYONDELLBASELL INDUSTRIES N.V.
 		  
  By:   /s/ James L. Gallogly    
    Name James L. Gallogly   
    Title:   Sole Member of the Management Board   
 
  LYONDELL CHEMICAL COMPANY
 		  
  By:   /s/ James L. Gallogly    
    Name:   James L. Gallogly   
    Title:   President and Chief Executive Officer   
 
cc:   Jeffery K. Malonson, Esq.
Vinson & Elkins L.L.P.
Via Facsimile

 

 

     
Exhibit A
LyondellBasell Industries N.V.
Supplemental Guarantor Financials
Presentation of Investments and Long-Term Receivables
Article 10-01(a)(2) of Regulation S-X
                                                                                                                                                 
(Millions of U.S. dollars)   LyondellBasell N.V.   LyondellBasell AF   LCC   Guarantors   Non-Guarantors   Eliminations   Consolidated
Total Assets
     14,855       12,817       2,823       17,516       17710       19,608       19,462       17585       18,465       17,729       15801       17,847                                                  
10% of total assets
     1,486       1,282       282       1,752       1,771       1,961       11,946       1,759       1,847       11,773       1,580       1,785                                                  
                                                                                                                                                                                                                                                                                 
    June 30,                   Dec. 31,           Dec. 31,           June 30,                   Dec. 31,           Dec. 31,           June 30,                   Dec. 31,           Dec. 31,           June 30,                   Dec. 31,           Dec. 31,           June 30,   Dec. 31,   Dec. 31,   June 30,   Dec. 31,   Dec. 31,
    2011   10%   25%   2010   10%   2009   10%   2011   10%   25%   2010   10%   2009   10%   2011   10%   25%   2010   10%   2009   10%   2011   10%   25%   2010   10%   2009   10%   2011   2010   2009   2011   2010   2009
Investments and long-term receivables:
                                                                                                                                                                                                                                                             —       —       —  
Investments in consolidated subsidiaries
     114,105       X               12,070       X       1,317       X       12,193       X               10,485       X       15,724       X       5,174       X               5,126       X       1,018                                                                       (31,472 )     (27,681 )     (18,059 )     —       —       —  
Equity investments
                                                                                                                                                                             1,643                       1,587       X       1,085                                       1,643       1,587       1,085  
Investments in PO joint ventures
                                                                                                                                                                             436                       437               922                                       436       437       922  
Other investments
                                                                             X       2               4                               X       4               9               48                       48               54                                       48       54       67  
Notes receivable, affiliates
                                                                                                                                                                             500                       500               2,901       X       (500 )     (500 )     (2,901 )     —       —       —  
Other investments and long-term receivables
                                                                                                                                                                             108                       102               59               (63 )     (75 )             45       27       59  
 
                                                                                                                                                                                                                                                                                
Proposed presentation:
                                                                                                                                                                                                                                                                                
Investments in consolidated subsidiaries
     114,105                       12,070               1,317               12,193                       10,485               15,724               5,174                       5,126               1,018               —                       —               —               (31,472 )     (27,681 )     (18,059 )     —       —       —  
Other investments and long-term receivables
     —                       —               —               —                       2               4               —                       4               9               2,235                       2,174               2,120               (63 )     (75 )     —       2,172       2,105       2,133  
Notes receivable, affiliates
     —                       —               —               —                       —               —               —                       —               —               500                       500               2,901               (500 )     (500 )     (2,901 )     —       —       —  
 
Legend:
 
X   indicates items that are 10% or more of Total Assets and/or items that have changed by 25% or more since the previous year end