Deutsche Bank and Citigroup are leading a $2.6 billion deal for Huntsman International. The facility consists of a seven-year, $2 billion term loan and a five-year, $600 million revolver, according to a lender. Price talk on the term loan is LIBOR plus 2% and LIBOR plus 1 3/4% on the revolver. Calls to Huntsman officials were not returned.
The new facility will consolidate the currently outstanding bank facility for Huntsman LLC and Huntsman International, which are merging. Huntsman International will be the surviving entity. Moody's Investors Service assigned a Ba3 rating to the debt.
In its report the rating agency writes that the proposed merger will improve Huntsman International's flexibility by providing additional room under the financial covenants. The term loan "B" provides the company with the ability to increase the facility's size by $500 million for permitted acquisitions, capital investments and refinancings, and $300 million to accommodate a merger or other transaction in which Huntsman Advanced Materials is merged into or becomes a subsidiary of Huntsman International. Standard & Poor's assigned a BB- rating to the credit facility.