HOUSTON--(BUSINESS WIRE)--Sep. 22, 2020-- Westlake Chemical Corporation (NYSE:WLK) announced that it has directed the Louisiana Local Governmental Environmental Facilities and Community Development Authority (the “Authority”) to optionally redeem in full $89 million aggregate principal amount of the Authority’s Revenue Bonds (Westlake Chemical Corporation Projects), Series 2010A-1 (the “GO Zone Bonds”) and $65 million aggregate principal amount of the Authority’s Revenue Bonds (Westlake Chemical Corporation Projects), Series 2010A-2 (the “Ike Zone Bonds”), in each case, on November 1, 2020 at a redemption price of par, plus accrued and unpaid interest, if any, to the redemption date. The GO Zone Bonds and the Ike Zone Bonds mature on November 1, 2035 and were issued by the Authority for the benefit of Westlake in December 2010 under the Gulf Opportunity Zone Act of 2005 (GO Zone Act) and Section 704 of the Emergency Economic Stabilization Act of 2008, respectively. Westlake expects to purchase the GO Zone Bonds and the Ike Zone Bonds in lieu of optional redemption and in connection therewith, to cancel and retire $154 million aggregate principal amount of Westlake’s 6.50% Senior Notes due 2035 (the “6.50% 2035 Senior Notes”) that were issued and are held by the trustee of the GO Zone Bonds and Ike Zone Bonds to evidence and secure Westlake’s payment obligations to the Authority under the Loan Agreements relating to the GO Zone Bonds and the Ike Zone Bonds, respectively. In June 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 and the Ike Zone Bonds.
Since the GO Zone Bonds and the Ike 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 and the Ike Zone Bonds will be delivered by the trustee, Wells Fargo Bank, National Association, 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.
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. For more information, visit the company's web site at www.westlake.com.
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 Ike Zone Bonds, and the cancellation and retirement of the 6.50% 2035 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 Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 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.
Westlake Chemical Corp.
Ben Ederington, 1-713-960-9111
Westlake Chemical Corp.
Steve Bender, 1-713-960-9111
Source: Westlake Chemical Corporation