Westlake Directs Redemption of $100 Million of Series 2009A GO Zone Revenue Bonds
June 25 2020 - 4:15PM
Business Wire
Westlake Chemical Corporation (NYSE:WLK) announced today that it
has directed the Louisiana Local Governmental Environmental
Facilities and Community Development Authority (the “Authority”) to
optionally redeem in full $100 million aggregate principal amount
of the Authority’s Revenue Bonds (Westlake Chemical Corporation
Projects), Series 2009A (the “GO Zone Bonds”) on August 1, 2020 at
a redemption price of par, plus accrued and unpaid interest, if
any, to the redemption date. The GO Zone Bonds mature on August 1,
2029 and were issued by the Authority in August 2009 and reoffered
in July 2010 under the Gulf Opportunity Zone Act of 2005 (GO Zone
Act) for the benefit of Westlake. Westlake expects to purchase the
GO Zone Bonds in lieu of redemption and in connection therewith, to
cancel and retire $100 million aggregate principal amount of
Westlake’s 6.50% Senior Notes due 2029 (the “6.50% 2029 Senior
Notes”) that were issued and are held by the trustee of the GO Zone
Bonds to evidence and secure Westlake’s payment obligations to the
Authority under the Loan Agreement relating to the GO Zone Bonds.
On June 12, 2020, Westlake completed the registered public offering
of $300 million aggregate principal amount of its 3.375% Senior
Notes due 2030 (the “3.375% 2030 Senior Notes”) and expects to use
a portion of the net proceeds from the offering of the 3.375% 2030
Senior Notes to fund the purchase in lieu of redemption of the GO
Zone Bonds.
Since the GO Zone Bonds are held under the book-entry system,
the notice of redemption specifying the terms, conditions and
procedures for the redemption of the GO Zone Bonds will be
delivered by the trustee, The Bank of New York Mellon Trust
Company, N.A., to the registered holders in accordance with the
procedures of The Depository Trust Company.
This press release is not an offer to sell or a solicitation of
an offer to buy any securities.
About Westlake
Westlake is a global manufacturer and supplier of materials and
innovative products that enhance life every day. Headquartered in
Houston, we provide the building blocks for vital solutions — from
packaging and healthcare products to automotive and consumer goods,
to building and construction products.
Forward-Looking Statements
The statements in this press release that are not historical
facts, such as statements regarding the utilization of net proceeds
from the 3.375% 2030 Senior Notes, the potential purchase in lieu
of redemption of the GO Zone Bonds, and the cancellation and
retirement of the 6.50% 2029 Senior Notes, are forward-looking
statements that are based on current expectations. Although
Westlake believes that its expectations are based on reasonable
assumptions, it can give no assurance that these expectations will
prove correct. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include results of operations, market conditions, capital needs and
uses and other risks and uncertainties that are beyond Westlake’s
control, including those described in Westlake’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2019, Westlake’s
Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2020 and in its other filings with the SEC. Forward-looking
statements, like all statements in this press release, speak only
as of the date of this press release (unless another date is
indicated). Westlake does not undertake any obligation to publicly
update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
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Media Inquiries: Westlake Chemical
Corp. Ben Ederington, 713-960-9111
or
Investor Inquiries: Westlake
Chemical Corp. Steve Bender, 713-960-9111
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