-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
P3AVpnesxvSrAOY418Df4Thca++aQfHPhOX3ofmrSXrWFhIEdld9RetSYpQqR2Mc
hWJW4ik2ge7wKBLO6lCHiQ==
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): November 2, 2005 LYONDELL CHEMICAL COMPANY (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 1-10145 95-4160558 (Commission File Number) (I.R.S. Employer Identification No.) 1221 McKinney Street, Suite 700, Houston, Texas 77010 (Address of principal executive offices) (Zip Code) (713) 652-7200 (Registrant's telephone number, including area code) Not Applicable (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) The descriptions set forth below are qualified in their entirety by the full text of the respective documents to which they refer, which documents are filed herewith. Item 1.01 Entry into a Material Definitive Agreement Lyondell Receivables Purchase Agreement On November 2, 2005, Lyondell Chemical Company ("Lyondell") entered into an amendment to its Receivables Purchase Agreement (the "Lyondell Receivables Purchase Agreement") dated as of December 17, 2003, as amended, among Lyondell Funding II, LLC as the seller, Lyondell as the servicer, the banks and other financial institutions party thereto as purchasers, and Citicorp USA, Inc. as asset agent and administrative agent for the purchasers. The amendment to the Lyondell Receivables Purchase Agreement extends the maturity of the facility to November 2, 2010, reduces the yield by 0.75%, reduces the unused commitment fee by 0.125%, and modifies certain other terms. There was no outstanding amount of accounts receivable sold under the Lyondell Receivables Purchase Agreement at November 2, 2005. The amendment to the Lyondell Receivables Purchase Agreement is being filed with this Current Report on Form 8-K as Exhibit 4.23(d). Equistar Credit Agreement, Undertaking Agreement and Receivables Purchase Agreement On November 2, 2005, Equistar Chemicals, LP ("Equistar"), a wholly owned subsidiary of Lyondell, entered into amendments to (1) its Credit Agreement (the "Credit Agreement") dated as of December 17, 2003, as amended, among Equistar, the subsidiaries of Equistar parties thereto, the lenders party thereto, Credit Suisse First Boston, JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association as co-documentations agents, Citicorp USA, Inc. and Bank of America, N.A. as co-collateral agents, and Citicorp USA, Inc. as administrative agent, (2) its Undertaking Agreement (the "Undertaking Agreement") dated as of December 17, 2003, as amended and (3) its Receivables Purchase Agreement (the "Equistar Receivables Purchase Agreement") dated as of December 17, 2003, as amended, among Equistar Receivables II, LLC as the seller, Equistar as the servicer, the banks and other financial institutions party thereto as purchasers, Citicorp USA, Inc as co-asset age
nt and administrative agent for the purchasers, Credit Suisse First Boston, JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association as co-documentations agents, and Bank of America, N.A. as co-asset agent. The amendments increase the total commitments under the Credit Agreement from $250 million to $400 million, increase the total commitments under the Equistar Receivables Purchase Agreement from $450 million to $600 million, extend the maturity of the facilities under each of the Credit Agreement and the Equistar Receivables Purchase Agreement to November 2, 2010, reduce the interest rates on borrowings under the Credit Agreement by 0.75%, reduce the unused commitment fee under the Credit Agreement by 0.375%, reduce the yield under the Equistar Receivables Purchase Agreement by 0.75%, reduce the unused commitment fee under the Equistar Receivables Purchase Agreement by between 0.25% and 0.125%, conform certain covenants in the Undertaking Agreement to the Credit Agreement, and modify certain other terms of each of the Credit Agreement and Equistar Receivables Purchase Agreement. Availability under the Credit Agreement, which was undrawn at closing, is reduced to the extent of outstanding l
etters of credit provided under the Credit Agreement. The outstanding amount of receivables sold under the Equistar Receivables Purchase Agreement was $100 million at November 2, 2005. The amendment to the Credit Agreement is being filed with this Current Report on Form 8-K as Exhibit 4.5(b). The amendment to the Equistar Receivables Purchase Agreement is being filed with this Current Report on Form 8-K as Exhibit 4.21(b). The amendment to the Undertaking Agreement is being filed with this Current Report on Form 8-K as Exhibit 4.22(b). Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant See "Lyondell Receivables Purchase Agreement" under Item 1.01 above. Lyondell has not guaranteed Equistar's obligations under the Equistar Credit Agreement, the Equistar Receivables Purchase Agreement or the Equistar Undertaking Agreement. However, under certain circumstances, a default under the Equistar Credit Agreement would constitute a cross-default under Lyondell's credit facility which, under certain circumstances, would then constitute a default under Lyondell's indentures. Item 9.01 Financial Statements and Exhibits (c) Exhibits 4.5(b) Amendment No. 2 dated as of November 2, 2005 to Credit Agreement dated as of December 17, 2003 among Equistar Chemicals, LP, the subsidiaries of Equistar Chemicals, LP parties thereto, the lenders party thereto, Credit Suisse First Boston, JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association as co-documentation agents, Citicorp USA, Inc. and Bank of America, N.A. as co-collateral agents, and Citicorp USA, Inc. as administrative agent (filed as Exhibit 4.2(b) to Equistar's Current Report on Form 8-K dated as of November 2, 2005 and incorporated herein by reference) 4.21(b) Amendment No. 2 dated as of November 2, 2005 to Receivables Purchase Agreement dated as of December 17, 2003 among Equistar Receivables II, LLC as the seller, Equistar Chemicals, LP as the servicer, the banks and other financial institutions party thereto as purchasers, Citicorp USA, Inc as co-asset agent and administrative agent for the purchasers, Credit Suisse First Boston, JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association as co-documentation agents, Bank of America, N.A. as co-asset agents (filed as Exhibit 4.7(b) to Equistar's Current Report on Form 8-K dated as of November 2, 2005 and incorporated herein by reference) 4.22(b) Amendment No. 2 dated as of November 2, 2005 to Undertaking Agreement dated as of December 17, 2003 by Equistar Chemicals, LP (filed as Exhibit 4.8(b) to Equistar's Current Report on Form 8-K dated as of November 2, 2005 and incorporated herein by reference) 4.23(d) Amendment No. 4 dated as of November 2, 2005 to Receivables Purchase Agreement dated as of December 17, 2003 among Lyondell Funding II, LLC as the seller, Lyondell Chemical Company as the servicer, the banks and other financial institutions party thereto as purchasers, and Citicorp USA, Inc. as asset agent and administrative agent for the purchasers SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LYONDELL CHEMICAL COMPANY By:/s/ Kerry A. Galvin Name: Kerry A. Galvin Title: Senior Vice President, General Counsel & Secretary Date: November 7, 2005 INDEX TO EXHIBITS Exhibit Number Description 4.5(b) Amendment No. 2 dated as of November 2, 2005 to Credit Agreement dated as of December 17, 2003 among Equistar Chemicals, LP, the subsidiaries of Equistar Chemicals, LP parties thereto, the lenders party thereto, Credit Suisse First Boston, JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association as co-documentation agents, Citicorp USA, Inc. and Bank of America, N.A. as co-collateral agents, and Citicorp USA, Inc. as administrative agent (filed as Exhibit 4.2(b) to Equistar's Current Report on Form 8-K dated as of November 2, 2005 and incorporated herein by reference) 4.21(b) Amendment No. 2 dated as of November 2, 2005 to Receivables Purchase Agreement dated as of December 17, 2003 among Equistar Receivables II, LLC as the seller, Equistar Chemicals, LP as the servicer, the banks and other financial institutions party thereto as purchasers, Citicorp USA, Inc as co-asset agent and administrative agent for the purchasers, Credit Suisse First Boston, JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association as co-documentation agents, Bank of America, N.A. as co-asset agents (filed as Exhibit 4.7(b) to Equistar's Current Report on Form 8-K dated as of November 2, 2005 and incorporated herein by reference) 4.22(b) Amendment No. 2 dated as of November 2, 2005 to Undertaking Agreement dated as of December 17, 2003 by Equistar Chemicals, LP (filed as Exhibit 4.8(b) to Equistar's Current Report on Form 8-K dated as of November 2, 2005 and incorporated herein by reference) 4.23(d) Amendment No. 4 dated as of November 2, 2005 to Receivables Purchase Agreement dated as of December 17, 2003 among Lyondell Funding II, LLC as the seller, Lyondell Chemical Company as the servicer, the banks and other financial institutions party thereto as purchasers, and Citicorp USA, Inc. as asset agent and administrative agent for the purchasers Exhibit 4.23(d) AMENDMENT NO. 4 TO RECEIVABLES PURCHASE AGREEMENT AMENDMENT dated as of November 2, 2005 to the Receivables Purchase Agreement dated as of December 17, 2003 (the "Receivables Agreement") among LYONDELL FUNDING II, LLC, a Delaware limited liability company (the "Seller"), LYONDELL CHEMICAL COMPANY, a Delaware corporation (the "Servicer"), the PURCHASERS from time to time party thereto and CITICORP USA, INC., as asset agent and administrative agent for the Purchasers (the "Agent"). The parties hereto agree as follows: Section 1. Defined Terms; References. Unless otherwise specifically defined herein, each term used herein which is defined in the Receivables Agreement has the meaning assigned to such term in the Receivables Agreement. Each reference to "hereof", "hereunder", "herein" and "hereby" and each other similar reference and each reference to "this Agreement" and each other similar reference contained in the Receivables Agreement shall, after this Amendment becomes effective, refer to the Receivables Agreement as amended hereby. Section 2. Amended Definitions. (a) Section 1.1 of the Receivables Agreement is hereby amended by inserting the following definition therein in correct alphabetical order: "Amendment No. 4 Effective Date" means November 2, 2005. (b) The following definition in Section 1.1 of the Receivables Agreement is amended to read in its entirety as follows: "Commitment Termination Date" means the fifth anniversary of the Amendment No. 4 Effective Date. (c) The definition of "Applicable Margin" in Section 1.1 of the Receivables Agreement is hereby amended by deleting the table contained therein and by inserting the following table in place thereof: Average Monthly Excess Availability Alternate Base Rate Adjusted LIBO Rate Greater than or equal to $450,000,000 0.25% 1.25% Less than $450,000,000 and greater than or equal to $225,000,000 0.50% 1.50% Less than $225,000,000 0.75% 1.75%
Section 3. Amendments to Article II. (a) Clause (b) of Section 2.4 of the Receivables Agreement is hereby amended by inserting the following phrase after the term "Agent" contained therein:
"or upon 1 Business Day's notice to the Agent in the case of reductions in outstanding Capital bearing Yield solely at the Applicable Base Rate"
(b) Clause (d) of Section 2.11 of the Receivables Agreement is hereby amended by deleting the percentage "0.50%" specified therein and inserting the percentage "0.375%" in place thereof.
Section 4. Amendments to Article V. Clause (f)(ii) of Section 5.4 of the Receivables Purchase Agreement is hereby amended by inserting the following proviso at the end of the first sentence thereof:
";provided further that, unless Total Excess Availability is less than $200,000,000 during any period of five consecutive Business Days within any twelve-month period, the Agent shall conduct no more than two such evaluations pursuant to this Section during such twelve-month period"
Section 5. Representations of Seller and Servicer. Each of the Seller and the Servicer represent and warrant that (i) their respective representations and warranties set forth in Article IV of the Receivables Agreement will be true in all material respects on and as of the Amendment Effective Date (as defined below) with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date and (ii) no Potential Event of Termination or Event of Termination will have occurred and be continuing on such date.
Section 6. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.
Section 7. Counterparts. This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
Section 8. Effectiveness. This Amendment shall become effective on the first date when, and simultaneously with the time upon which, the following conditions are met (the "Amendment Effective Date"):
Promptly after the Amendment Effective Date occurs, the Agent shall notify the Seller, the Servicer and the Purchasers thereof, and such notice shall be conclusive and binding on all parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.
CITICORP USA, INC., as Agent |
|
By: |
/s/ David Jaffe |
Name: David Jaffe |
|
Title: Director/Vice President |
LYONDELL FUNDING II, LLC, as Seller |
|
By: |
/s/ Karen A. Twitchell |
Name: Karen A. Twitchell |
|
Title: Vice President and Treasurer |
LYONDELL CHEMICAL COMPANY, as Servicer |
|
By: |
/s/ Karen A. Twitchell |
Name: Karen A. Twitchell |
|
Title: Vice President and Treasurer |
CITICORP USA, INC. |
|
By: |
/s/ David Jaffe |
Name: David Jaffe |
|
Title: Director/Vice President |
Bank of America, N.A. |
|
By: |
/s/ Stephen King |
Name: Stephen King |
|
Title: Vice President |
JPMORGAN CHASE BANK, N.A. |
|
By: |
/s/ Stacey L. Haimes |
Name: Stacey L. Haimes |
|
Title: Vice President |
CREDIT SUISSE, CAYMAN ISLANDS BRANCH (Formerly known as Credit Suisse First Boston, Acting Through Its Cayman Islands Branch) |
|
By: |
/s/ Thomas R. Cantello |
Name: Thomas R. Cantello |
|
Title: Vice President |
|
By: |
/s/ Gregory S. Richards |
Name: Gregory S. Richards |
|
Title: Associate |
The Bank of New York |
|
By: |
/s/ John V. Yancey |
Name: John V. Yancey |
|
Title: Managing Director |
National City Business Credit, Inc. |
|
By: |
/s/ Anthony Alexander |
Name: Anthony Alexander |
|
Title: Vice President |
Wells Fargo Foothill, LLC |
|
By: |
/s/ Patrick McCormack |
Name: Patrick McCormack |
|
Title: Assistant Vice President |