LyondellBasell Secures Financial Flexibility Amid Strategic Restructuring

Credit Agreement Amendments Offer Strategic Leverage

Chemical giant LyondellBasell has successfully negotiated greater financial flexibility, though the amended terms of its credit agreement come with specific limitations on capital returns to shareholders. The development coincides with a downward revision of the stock’s price target by investment bank Rothschild, which nonetheless maintains its positive outlook on the equity.

Effective September 10, a key amendment to LyondellBasell’s credit facility permits the company to operate with a higher leverage ratio through 2027. This adjustment to the covenant, known as the Maximum Leverage Ratio, provides the multinational with crucial operational breathing room amidst a challenging market environment.