Published on 6/15/2004 in the Prospect News High Yield Daily.
New Issue: Huntsman sells $400 million notes restructured into two tranches
By Paul A. Harris
St. Louis, June 15 - Huntsman LLC restructured its $400 million high-yield bond offering into two tranches (B3/CCC+) and priced both of them on Tuesday, according to a syndicate source.
The Salt Lake City-based petrochemical company sold $300 million of eight-year fixed-rate senior notes at par to yield 11½%. Price talk was 11¼% to 11½%.
The company also sold $100 million of seven-year senior floating-rate notes at par to yield three-month Libor plus 725 basis points.
Credit Suisse First Boston, JP Morgan, Citigroup, Deutsche Bank Securities and UBS Investment Bank ran the books for the Rule 144A/Regulation S offering. Merrill Lynch & Co. was the co-manager.
Proceeds will be used to repay the company's $365 million term loan B and its $25 million Australian credit facility.
The company had originally been in the market with a single $400 million tranche of fixed-rate notes.
| Issuer: | Huntsman LLC
|
| Security description: | Senior notes
|
| Bookrunners: | Credit Suisse First Boston, JP Morgan, Citigroup, Deutsche Bank Securities, UBS Investment Bank
|
| Co-manager: | Merrill Lynch & Co.
|
| Pricing date: | June 15
|
| Settlement date: | June 22
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
|
|
| Fixed-rate notes
|
| Amount: | $300 million
|
| Maturity: | July 15, 2012
|
| Coupon: | 11½%
|
| Price: | Par
|
| Yield: | 11½%
|
| Spread: | 699 basis points
|
| Call features: | Callable after July 15, 2008 at 105.75, 102.875, par on or after July 15, 2010
|
| Equity clawback | Until July 15, 2007 for 40% at 111.50
|
| Price talk: | 11¼%-11½%
|
|
|
| Floating-rate notes
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| Amount: | $100 million
|
| Maturity: | July 15, 2011
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| Coupon: | Three-month Libor plus 725 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 725 basis points
|
| Call features: | Callable after July 15, 2006 at 104, 102, par on or after July 15, 2008
|
| Equity clawback: | Until July 15, 2006 for 40% at par plus applicable coupon
|
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