Huntsman $1.74 billion credit facility to launch Wednesday

By Sara Rosenberg

New York, June 14 - Huntsman International LLC will hold a bank meeting Wednesday for a proposed $1.74 billion credit facility, according to a market source.

Deutsche Bank and Citigroup are the lead banks on the deal, with Deutsche listed on the left.

The facility consists of a $1.34 billion term loan and a $400 million revolving credit facility. Market talk says the term loan may be priced in the mid-300s area, a buyside source told Prospect News.

The company wants to consolidate its term loan B and term loan C into one large institutional term loan due Dec. 31, 2010 with an increased size of $100 million and, as was previously reported, extend its $400 million revolver through Sept. 30, 2008.

The whole deal is being syndicated since the entire capital structure is being changed through the extension of the loans' maturity dates, as well as through consolidation and increased liquidity, the source explained.

The $100 million incremental term loan proceeds will be used for general corporate purposes, which may include the construction of a low-density polyethylene facility at the Wilton, U.K., site.

As of March 31, Huntsman's credit facility consisted of a $620.1 million term loan B maturing on June 30, 2007, a $620.1 million term loan C maturing on June 30, 2008 and a $400 million revolver maturing on June 30, 2005, which had $110 million in outstanding borrowings drawn.

The weighted average interest rate of these borrowings was 5.2%, according to a 10-Q filed with the Securities and Exchange Commission on May 17.

The company expects the amendment and restatement to be completed by June 30.

Huntsman is a Salt Lake City chemical company.

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