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Huntsman Announces Completion of Merger of Huntsman LLC and Huntsman International LLC; Closes New Credit Facility

Published on 2005-08-17. Author : SpecialChem

THE WOODLANDS, Tex. -- Huntsman Corporation (NYSE: HUN - News; "Huntsman") announced that it has completed the merger of two of its primary operating subsidiaries -- Huntsman LLC and Huntsman International LLC -- with Huntsman International LLC being the surviving entity.

In connection with the merger, Huntsman International LLC has entered into a new senior secured credit facility providing for a $1.85 billion U.S. dollar equivalent term loan due 2012 and up to $650 million U.S. dollar equivalents in revolving loans due 2010. Initial interest rate margins under the facilities are at LIBOR plus 1.75%. Proceeds from the new credit facility were used to repay amounts outstanding under the previous credit facilities of Huntsman International LLC and Huntsman LLC, to fund the redemption of certain subordinated notes of Huntsman LLC due 2007 and to repay certain other indebtedness.

According to Kimo Esplin, Executive Vice President and Chief Financial Officer, "The merger will simplify Huntsman's financing and SEC reporting structure and the new credit facility and related financings are expected to result in annual cash interest expense savings of approximately $20 million."

Huntsman's 90%-owned subsidiary Huntsman Advanced Materials LLC was not involved in the merger and remains a separately financed subsidiary of Huntsman.

Huntsman is a global manufacturer and marketer of differentiated and commodity chemicals. Its operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman today has 11,300 employees, 57 operations in 22 countries, and had 2004 revenues of $11.5 billion.

Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. Accordingly, there can be no assurance that the company's expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

Source: Huntsman Corporation


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