Huntsman Corp. is pursuing a $250 million bond deal with all the proceeds directed to paying down the company's $450 million "B" loan, said Sean Douglas, Huntsman's treasurer. The "B" piece traded up in the 95 range last week in anticipation. Market players believe the company will also choose to increase the size of its bond offering just short of an amount to take out the entire "B" piece, but Douglas declined to comment on the possibility of a larger offering or give a ball-park coupon for the new issue.
In addition to the "B" loan, Huntsman Corp. has a $275 million revolver and a $938 million "A" tranche. The offering is good news for the banks that have been waiting for the company to improve, said one market player. Last year, Huntsman restructured its debt exchanging approximately $775 million of outstanding bonds into equity through a transaction with MatlinPatterson Global Opportunities Partners, the company's largest bondholder. The Deutsche Bank-led credit facility was rolled into the current bank debt in conjunction with the restructuring.