Huntsman Corp.'s bank debt shot up five points in the new year with a combination of buyer pressure and an increasing spread. The company's "B" loan, which was trading in the 93-94 range prior to New Year's festivities, rose to the 98-99 range when desks filled up post-holiday. "Guys are buying everything below par," noted one buysider, adding that the first quarter is the best time for liquidity.
The pricing on the company's "B" loan was also bumped up to LIBOR plus 81/4% at the end of last month, providing a bit more incentive for investors. The increasing spread was written into the credit agreement to provide incentive for the company to pay down the "B" loan. Sean Douglas, Huntsman's v.p. and treasurer, noted that the former pricing was 73/4%. Huntsman's "B" loan is a good relative value play, noted one dealer.