Huntsman LLC/Huntsman International new credit facility expected in third quarter

By Sara Rosenberg

New York, June 17 - Huntsman LLC and Huntsman International LLC, two subsidiaries of Huntsman Corp., are proposing to merge into one entity, and that combined company will seek to obtain a new secured credit facility, according to a market source.

"It's a major undertaking merging these two, timing is uncertain but probably third quarter," the source explained.

Deutsche Bank, who has led deals for Huntsman in the past, is expected to be involved in this new financing as well; however, lead roles have not officially gone out, the source added.

Furthermore, structure and size are still to be determined.

On Friday, Houston-based chemical company Huntsman Corp. announced that it is soliciting consents from the holders of the outstanding senior secured and unsecured notes of Huntsman LLC in connection with the proposed merger with Huntsman International. Once these consents are obtained, the proposed combined company will seek the new credit facility.

The purpose of the merger is to simplify Huntsman's financing and Securities and Exchange Commission reporting structure, facilitate cost reductions for Huntsman's bank credit facilities and other financing arrangements, and for other organizational efficiencies, the company news release said.

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