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 13.43
2 Rabobank 12.61
3 Morgan Stanley 10.27
4 Barclays 7.86
5 Natwest Markets (RBS) 7.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 27 Mar 2017
1 Bank of America Merrill Lynch 18,561.02 56 11.69%
2 Wells Fargo Securities 18,160.90 57 11.44%
3 JPMorgan 12,092.45 38 7.62%
4 Citi 11,878.92 43 7.48%
5 Credit Suisse 9,276.87 26 5.84%