Huntsman International is in the market with a seven-year, $350 million add-on term loan to back the merger between Huntsman International and Huntsman Advanced Materials. Pricing on the deal, led by Deutsche Bank, will be layered in and will remain the same as the existing term loan at LIBOR plus 1 3/4%.
Huntsman Corp. announced on Dec. 2 that it had reached an agreement with affiliates of SISU Capital to acquire the remaining 9.7% interest in Huntsman Advanced Materials for $125 million. Following the acquisition, it is anticipated that AdMat will become a subsidiary of Huntsman International and that all of its outstanding senior notes will be refinanced with available cash balances of about $63 million and the proceeds of the $350 million term loan, according to a statement from the company. Standard & Poor's assigned a BB- to the facility.
Huntsman last tapped the bank market in July with a $2.6 billion deal led by Deutsche Bank and Citigroup that consolidated the current bank facility for Huntsman LLC and Huntsman International, which were merging. At launch that deal consisted of a $2 billion term loan and a $600 million revolver, with price talk of LIBOR plus 2% on the term loan and LIBOR plus 1 3/4% on the revolver (LMW, 7/22). Later, $50 million was shifted out of the term loan and into the revolver. J. Kimo Esplin, cfo, could not be reached.