Huntsman's bank debt rallied from the 87-88 range up to the 911/4-921/4 range on what the market considered good results over the last quarter. In particular, market players were encouraged by the Huntsman companies' initiative to reduce fixed costs by $200 million over the next 18 months. Dealers said a corresponding bond rally and a couple of new buyers of the Huntsman bank debt also contributed to the rise.
Huntsman had EBITDA of $49.7 million over the last three months ended Sept. 30. While the revenues for the last quarter increased 13% to $828.9 million compared to the same period in 2002, EBITDA compared across the same periods decreased 29%.
The company completed a $380 million senior secured note offering in September. Proceeds from the offering were used to repay approximately $297 million of the company's "A" term loan. There are no scheduled term loan payments on Huntsman's credit facilities until December 2005. Proceeds were also directed to repay $65 million outstanding on the company's revolver. Calls to Sean Douglas, Huntsman's v.p. and treasurer, were not returned by press time.