Huntsman ICI's term loan "A" traded up from 96 to 97 3/4 last week as market players reacted to rumors that a $200 million bond deal for the company is in the works. As first reported on LMW's Web site last week, traders believe the company will use proceeds from a bond deal to pay down part of the bank debt. An estimated $5-10 million of the paper changed hands, with institutional players driving the trades, dealers said. Trading slowed by the end of last week as dealers looked to get official confirmation of the deal.
Meanwhile, the company's parent, Huntsman Corp., also saw action last week as a $23 million piece of its bank debt was auctioned off in the 76-77 range following a syndication meeting, traders said. Although it could not be determined what was discussed, the bank debt has risen from the 68-73 range, where $10 million traded earlier last week. "The paper has traded on the back of it," said one dealer, referring to the meeting. A major Midwestern bank that is an original lender is said to be the player that auctioned off the paper, but the identity of the bank could not be confirmed. J. Kimo Esplin, senior v.p. and cfo of Huntsman Corp., did not return calls by press time.