Huntsman Announces Completion of Financing Transactions
Company Also Announces Early Tender Results for Cash Tender Offer for Senior Subordinated Notes due 2014
THE WOODLANDS, Texas, Sept 27, 2010 /PRNewswire via COMTEX/ --
Huntsman Corporation (NYSE: HUN) today announced that on September 24, 2010, its wholly-owned subsidiary, Huntsman International LLC, consummated its previously announced $350 million offering of senior subordinated notes due 2021 (the "2021 Notes"). The 2021 Notes will carry an interest rate of 8 5/8% and will mature on March 15, 2021.
The company also announced that Huntsman International used approximately $183 million of the net proceeds of the offering to purchase approximately euro 132 million (approximately $177 million equivalent) in aggregate principal amount of its 6 7/8% Senior Subordinated Notes due 2013 in a tender offer conducted outside the United States.
Huntsman International intends to use the remaining net proceeds to purchase a portion of its senior 7 7/8% Senior Subordinated Notes due 2014 (the "2014 Notes") in connection with its previously announced cash tender offer for the 2014 Notes. As of 5:00 p.m., New York City time, on September 24, 2010, the early tender date, holders had validly tendered an aggregate principal amount of approximately $159million of 2014 Notes in the tender offer. Notes tendered in the tender offer may no longer be withdrawn, except as required by law. Subject to the terms and conditions of the tender offer, the company expects to pay for 2014 Notes that have been validly tendered and not validly withdrawn on the business day after the October 8, 2010 expiration date for the offer.
Huntsman International expects to incur a charge of approximately $14 million for the early retirement of the notes purchased in the tender offers.
Huntsman will also increase the size of its revolving credit facility from $225 million to $290million. There are currently no borrowings under this facility.
Goldman, Sachs & Co. is serving as the dealer manager for the U.S. Tender Offer. Global Bondholder Services Corporation is serving as the depositary and as the information agent for the U.S. Tender Offer. Requests for copies of the Offer to Purchase and related Letter of Transmittal, which contain the full terms and conditions of the U.S. Tender Offer, may be directed to Global Bondholder Services Corporation by telephone at (866) 540-1500 (toll-free) or (212) 430-3774 (collect), or in writing at 65 Broadway, Suite 404, New York, New York 10006. Questions regarding the tender offer may be directed to Goldman, Sachs & Co. at (800) 828-3182 (toll-free) or (212) 902-5183 (collect).
>>Whatever intriques are afoot, it is still hard to escape the reality that, despite all its cash, HUN had to pay a pretty hefty interest rate to borrow the new money. 8-5/8% is pretty high in this market. And to use it to payoff lower interest debt early (at additional cost) still raises my eyebrows.<<
On Monday, HealthSouth Corporation (HLS), a chain of inpatient rehab hospitals, announced that it was going to issue two classes of senior notes, $275 million due in 2018 and $250 million due in 2022. http://finance.yahoo.com/news/HealthSouth-Announces-prnews-3864438066.html?x=0&.v=1
Today HLS announced that it had succeeded in selling both senior notes, the 2018 notes at 7.25% and the 2022 notes at 7.75%.
http://www.reuters.com/article/idCNN2939834220100929?rpc=44 The company intends to use the proceeds to pay down debt incurred during a refinancing in 2006. Both S&P and Moody's raised HLS's credit rating yesterday to B+, which is considered junk status.
BTW HLS's Preliminary Prosectus provides that "The notes and the guarantees will be senior unsecured obligations of HealthSouth Corporation and our subsidiary guarantors that guarantee borrowings under our credit agreement and other capital markets debt. The notes will rank equal in right of payment to our current and future senior debt and will rank senior in right of payment to any future subordinated debt. The notes will be effectively subordinated to our current and future secured debt, including borrowings under our credit agreement, to the extent of the value of the assets securing such debt. In addition, the notes and the guarantees will be structurally subordinated to any liabilities, including trade payables, of our non-guarantor subsidiaries."
Hey N. congrats from me too. You will definitely not regret your decision. I saw one of my cousins earlier this month who has bought a "mansion" in your neck of wood at a bargain basement price. She bought a short sale right on the river and is also looking to buy more properties there. Opportunities galore...where there is crisis there is definitely a chance of a life time.