Huntsman Taps Covenant-Lite Market

Huntsman Intl. tapped the loan market last Wednesday for its first covenant-lite term loan. Deutsche Bank and Credit Suisse are leads, with Citigroup as the joint bookrunner.

  • 06 Apr 2007
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Huntsman Intl. tapped the loan market last Wednesday for its first covenant-lite term loan. Deutsche Bank and Credit Suisse are leads, with Citigroup as the joint bookrunner. The financing consists of a new covenant-lite, $1.64 billion term loan priced at LIBOR plus 1 3/4%. An existing $650 million revolver is being amended to have one maintenance covenant ­ a 3.75 times total leverage test.

"We're in it, but not sure we like a chemical company that's covenant lite," said one portfolio manager. "They have been covenanted for some time." But another investor was less ruffled, seeing the covenant-lite structure as just a reflection of the market. "I think they are just doing it because they can," he said.

The new proposal calls for making the term loan due now in 2014 ­ it was previously due in 2012. The revolver remains due in 2010.

Standard & Poor's assigned a BB rating to the amended and restated loans, one notch higher than the company's corporate rating. Huntsman officials were out of the office and could not immediately comment on the financing.

  • 06 Apr 2007

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Societe Generale 41.30
2 Rabobank 35.35
3 Morgan Stanley 11.45
4 BNP Paribas 5.95
4 Credit Agricole 5.95

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Jan 2017
1 SG Corporate & Investment Banking 1,260.06 2 126,006,164,037.19%
2 Rabobank 1,081.86 1 108,185,922,974.77%
3 Wells Fargo Securities 430.57 1 43,057,020,785.00%
4 SK Securities 192.86 1 19,286,162,593.99%
4 Meritz Financial Group Inc 192.86 1 19,286,162,593.99%