Huntsman bank debt traded a touch stronger in the 93-941Ž2 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. Credit Suisse First Boston and Deutsche Bank led the deal. 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. As of Sept. 30, Huntsman had a $641.5 million "A" piece and a $459 million "B" tranche. The "A" tranche carries pricing of LIBOR plus 43Ž4%. The "B" loan was increased after the company did not repay at least $350 million on its "B" loan by May 31, triggering a supplemental fee of 2% added to the principal amount. The credit agreement also provides escalating interest rates on the "B" each quarter up to LIBOR plus 93Ž4%. The "B" piece currently carries a 73Ž4% spread. Sean Douglas, Huntsman's v.p. and treasurer, did not return calls by press time.