Huntsman amends loan to extend revolver, reduce interest margin

By Jennifer Chiou

New York, March 6 - Huntsman Corp. subsidiary Huntsman International LLC entered into the seventh amendment to its credit agreement with JPMorgan Chase Bank, NA as administrative agent, bringing the capacity for revolving commitments to up to $400 million from $300 million, according to an 8-K filing with the Securities and Exchange Commission.

The changes, among other things, extend the stated termination date of the revolving commitments to March 20, 2017 from March 9, 2014.

The filing noted that the termination date will accelerate if Huntsman does not repay, refinance or have a minimum level of liquidity available to allow it to repay its 5½% senior notes due 2016, term B dollar loans due April 19, 2014 or the term C dollar loans due June 30, 2016.

The updates also cut the interest rate margin on the extended revolver by 50 basis points across the leverage-based pricing grid and set the undrawn commitment fee to 50 bps.

Further, Huntsman's $346 million aggregate principal amount of term B debt was extended to April 19, 2017 from April 19, 2014. The term B bears interest at Libor plus 300 bps.

Huntsman is a Salt Lake City, Utah-based manufacturer and marketer of differentiated chemicals.

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