Huntsman to redeem 11¾% notes with note sale proceeds

New York, Dec. 12 - Huntsman LLC (B2/B) said it will redeem Huntsman Polymers' outstanding 11¾% notes due 2004, which are currently callable at par any time before their maturity next December.

Huntsman said it has given notice to the 11¾% notes' indenture trustee of its intention to redeem the notes. The redemption is expected to be completed within 45 to 60 days.

To fund the redemption, Huntsman will use $36.8 million of the proceeds of its completed issuance of $75.4 million principal amount of new 11 5/8% senior secured notes due 2010, which were sold as an add-on to the company's existing notes at a price of 99.5 on Dec. 3.

Huntsman, a Salt Lake City, Utah-based chemical company, said that net proceeds to the company from the sale, excluding underwriting discounts, commissions and offering expenses, are estimated to be $72 million in cash.

The company plans to use the balance of the proceeds from the recent bond sale to repay a portion of the term A loan under Huntsman LLC's senior term loan facilities, including all required amortization payments through December 2005. Huntsman said that with the repayment of a portion of the term A loan, the company has no amortization payments due under its senior credit facilities until 2006.

For information on the redemption should contact Sean Douglas, Huntsman's vice president and treasurer at 801 584-5743.

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