Westlake Chemical Announces Pricing of ReOffering of Tax-Exempt Bonds
November 21 2017 - 5:47PM
Business Wire
Westlake Chemical Corporation (NYSE: WLK) (“Westlake”) announced
today that it has priced its previously announced remarketing
(“Remarketing”) of Louisiana Local Government Environmental
Facilities and Community Development Authority (the “Authority”)
Revenue Refunding Bonds (Westlake Chemical Corporation Projects),
Series 2017 (the “2017 Revenue Refunding Bonds”) of $250.0 million
aggregate principal amount of due 2032. The 2017 Revenue Refunding
Bonds will bear interest at a rate of 3.50% per annum and will
mature on November 1, 2032. In connection with the Remarketing, the
Company will issue $250 million aggregate principal amount of its
3.50% Senior Notes due 2032 (the “Collateralizing Notes”) to
collateralize its obligations under the Amended and Restated Loan
Agreement relating to the 2017 Revenue Refunding Bonds. The
Remarketing is scheduled to close on November 29, 2017, subject to
customary closing conditions.
Westlake intends to use the net proceeds from the Remarketing
and its underwritten public offering of $500.0 million of 4.375%
Senior Notes (the “Notes”) scheduled to close on November 28, 2017,
subject to customary closing conditions, together with the
proceeds from borrowings under its revolving credit facility, and
cash on hand, to redeem $1.138 billion aggregate principal amount
of Westlake’s and certain wholly owned subsidiaries’ 4.625% senior
notes due 2021 (the “2021 Notes”) and 4.875% senior notes due 2023
(the “2023 Notes”) on or after the call dates of February 15, 2018,
and May 15, 2018, respectively. Westlake has not called the 2021
Notes or the 2023 Notes for redemption and this press release is
not a notice of redemption of or an offer to purchase any 2021
Notes or 2023 Notes.
The Remarketing and the 2017 Revenue Refunding Bonds have not
been registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws and, unless so
registered, may not be offered or sold in the United States except
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act and applicable
state securities laws. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy any securities
(including the 2017 Revenue Refunding Bonds, the Notes, the 2021
Notes or the 2023 Notes), nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state or
jurisdiction.
J.P. Morgan Securities LLC and RBC Capital Markets, LLC acted as
co-senior managers for the remarketing of the 2017 Revenue
Refunding Bonds.
About Westlake
Westlake Chemical Corporation is an international manufacturer
and supplier of petrochemicals, polymers and building products with
headquarters in Houston, Texas. The company’s range of products
includes: ethylene, polyethylene, styrene, propylene, chlor-alkali
and derivative products, PVC suspension and specialty resins, PVC
Compounds, and PVC building products including siding, pipe,
fittings and specialty components, windows, fence, deck and
film.
Forward-Looking Statements
The statements in this release that are not historical facts,
such as statements regarding the closing of the public offering of
the Notes and the Remarketing, the use of proceeds therefrom, the
potential redemption of the 2021 Notes and the 2023 Notes, and
other matters relating to the public offering of the Notes, the
potential redemptions and the Remarketing, 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 the prospectus, Westlake’s
Form 10-K for the fiscal year ended December 31, 2016 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). We do not
undertake any obligation to publicly update any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Westlake may not consummate the redemption of the 2021 Notes and
2023 Notes , which is subject to market conditions and other
factors, and the closing of the offering of the Notes and the
Remarketing are not conditioned upon the consummation of the
redemption of the 2021 Notes and 2023 Notes.
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version on businesswire.com: http://www.businesswire.com/news/home/20171121006139/en/
Westlake Chemical Corp.Media Inquiries:Ben Ederington,
1-713-960-9111orInvestor Inquiries:Steve Bender, 1-713-960-9111
Westlake (NYSE:WLK)
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