Commodity chemicals manufacturer Huntsman Corporation announced 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 producer and marketer of differentiated and commodity chemicals.
marketing@alchempro.com
