LyondellBasell priced a $1.5 billion public offering of guaranteed notes on November 10 2025, issuing $500 million of 5.125% notes due 2031 and $1 billion of 5.875% notes due 2036. All tranches are fully and unconditionally guaranteed by the company, giving investors confidence in the repayment of principal and interest.
The proceeds are earmarked for general corporate purposes, including the repayment of certain guaranteed notes that mature in 2026 and 2027. By refinancing these near‑term obligations, the company improves its debt maturity profile and secures a longer‑term, fixed‑rate financing structure that locks in current interest rates.
This transaction aligns with LyondellBasell’s Cash Improvement Plan, which targets $500 million in financial performance enhancement in 2025 and at least $1.1 billion by the end of 2026. The new capital provides liquidity to support ongoing operations, potential future investments, and the company’s broader strategy to maintain an investment‑grade balance sheet.
Financially, the company’s Q3 2025 debt‑to‑equity ratio was 1.26 and its current ratio 1.57, indicating adequate liquidity. However, an Altman Z‑Score of 1.3 places the firm in the distress zone, underscoring the importance of disciplined debt management. CFO Agustin Izquierdo highlighted that the company generated $983 million of cash from operating activities in the quarter, a significant improvement that supports debt servicing and dividend payments.
CEO Peter Vanacker emphasized that the Cash Improvement Plan is on track, noting that the company is “prioritizing our investment‑grade balance sheet while investing in safe and reliable operations.” He added that the plan’s success relies on continued cost discipline and strategic capital allocation.
The offering provides LyondellBasell with flexibility to refinance maturing debt and support its cash improvement objectives. While the company’s leverage remains a concern, the guaranteed notes and the company’s cash generation capacity mitigate immediate refinancing risk. No market reaction data are available at this time.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.