Westlake Chemical Announces Pricing of ReOffering of Tax-Exempt Bonds
HOUSTON–(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.
Contacts
Westlake Chemical Corp.
Media Inquiries:
Ben
Ederington, 1-713-960-9111
or
Investor Inquiries:
Steve
Bender, 1-713-960-9111