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 Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 82,406.77 239 12.85%
2 Bank of America Merrill Lynch 71,317.58 219 11.12%
3 Wells Fargo Securities 62,984.09 198 9.82%
4 JPMorgan 45,920.23 145 7.16%
5 Credit Suisse 37,235.50 114 5.81%