Huntsman bank debt has been trading a touch stronger in the 93-94 1/2 range with reports that the company came back to issue a $75 million drive-by bond deal. The company had some room under its recent amendment to issue the bonds, explained one dealer. In September, Huntsman obtained an amendment to allow it to issue $380 million in bonds. The proceeds of this deal were used to repay approximately $65 million on the revolving credit facility and approximately $297 million on the “A” term loan. Whether the most recent issue is an add-on to the September deal and the exact use of proceeds could not be determined by press time. Sean Douglas , Huntsman’s v.p. and treasurer, did not return call by press time.
Reliant Resources ’ term loan has been inching up to the 96 1/4 - 96 3/4 level over the last week on news that the company received clearance from the Dutch competition authority for the sale of its European energy operations to Nuon, the Netherlands-based electricity distributor. Reliant expects to receive about $1.3 billion in cash proceeds upon completion of the sale. The company has stated that proceeds will be directed to pay down its EUR600 million bank loan under Reliant Energy Capital . Approximately $200 million of the proceeds will then be directed to prepay debt under credit facilities the company completed in March 2003. Reliant signed the agreement for the sale last February. Calls to Rex Clevenger , Reliant Resources’ senior v.p., finance, were referred to a spokesperson, who did not return calls by press time.