Huntsman Prices Private Offering of Senior Subordinated Notes
Company to Use Net Proceeds to Redeem More Expensive Debt
THE WOODLANDS, Texas, Feb. 23 /PRNewswire/ -- Huntsman International LLC, a wholly owned subsidiary of Huntsman Corporation (NYSE: HUN), today announced that on February 22, 2007, it priced a direct private placement of $147.0 million in aggregate principal amount of its U.S. dollar denominated 7 7/8% senior subordinated notes due November 15, 2014. These notes were issued at a premium of 104% of principal amount for a yield of 7.01% and were issued under the same indenture and are of the same series as an original placement of dollar denominated notes in November 2006.
The closing of the offering is expected to occur on February 27, 2007, and is subject to the satisfaction of customary closing conditions. The company intends to use the net proceeds of approximately $152.9 million to redeem all (approximately Euro 114 million) of its remaining outstanding Euro denominated 10 1/8% senior subordinated notes, due 2009, which are being called for redemption on March 27th, 2007, at a call price of 1.01688%.
Kimo Esplin, Chief Financial Officer of Huntsman Corporation, stated, "We are pleased with the success of this refinancing as we continue to take advantage of opportunities to reduce our interest expense and improve our capital structure. This refinancing is expected to reduce our annual interest expense by approximately $5 million."
The offering has been made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933. This release is not an offer of securities. The securities offered will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 14,000 employees and over 75 operations in 24 countries. The Company had 2006 revenues from all operations of over $13 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 U.S. 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. In addition, the completion of any transactions described in this release is subject to a number of uncertainties and to negotiation and execution of definitive agreements among the parties and closing will be subject to approvals and other customary conditions. Accordingly, there can be no assurance that such transactions will be completed or 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 applicable laws.
SOURCE Huntsman International LLC
CONTACT: Media, Russ Stolle, +1-281-719-6624, or Investor Relations, John Heskett, +1-801-584-5768, both of Huntsman Corporation