Huntsman amends credit agreement, waives defaults, raises borrowing costs

New York, Dec. 4 - Huntsman International said amendments to its credit facility were approved by lenders holding 95% of the company's senior secured debt, putting the privately held chemical company back into compliance with covenants and restoring full access to the credit line.

"`We view this as a huge vote of confidence in Huntsman International,'" said Peter R. Huntsman, president and chief executive officer of the company. "Though our international businesses have not faced the same degree of economic hardship as our North American businesses, they still have faced the same factors that have caused the global chemical industry to struggle. With these amendments to our credit facilities, Huntsman International may proceed with business as usual, including maintaining relationships with customers and suppliers, making necessary capital expenditures and funding ongoing joint venture projects."

Huntsman International, based in Everberg, Belgium, is a separate legal entity from Huntsman Corp.

The amendment to the credit facility, the third, waives defaults and amends covenants effective Sept. 30, 2001. It also increases the interest rate and requires payment of a 25 basis point amendment fee.

Banks on the facility, which dates from June 1999, are Bankers Trust Co. as lead arranger, administrative agent and sole book manager, Goldman Sachs Credit Partners LP as syndication agent and co-arranger and The Chase Manhattan Bank and UBS Warburg LLC as co-arrangers and as co-documentation agents.

The interest rate on the loans is set at a margin over either Libor or the base rate using a pricing grid based on the company's leverage ratio. By adding an additional row of higher rates for higher leverage ratios, the amendment effectively increases the borrowing costs.

The old maximum interest rate (leverage ratio 5.00:1 and higher) and the new maximum rates (leverage ratio 5.50:1 and higher) in the grid are now as follows:

Base rate loans Libor loans

Leverage Ratio	Revolver, term A	Term B	Term C	Revolver, term A	Term B	Term C
5.50:1 and higher	200 bps	250 bps	275 bps	325 bps	375 bps	400 bps
5.00:1 and higher	150 bps	200 bps	225 bps	275 bps	325 bps	350 bps
	From the amendment until delivery of financial statements for the quarter ended March 31, 2002, the loans will be at the 5.50:1 and higher rate.
	The covenant amendments include the interest coverage ratio, which Huntsman International is now required to meet as follows:
Period	Ratio
July 1, 2001 to Dec. 31, 2001	1.95 to 1.0
Jan. 1, 2002 to March 31, 2002	1.80 to 1.0
April 1, 2002 to June 30, 2002	1.80 to 1.0
July 1, 2002 to Sept. 30, 2002	1.95 to 1.0
Oct. 1, 2002 to Dec. 31, 2002	2.10 to 1.0
Jan. 1, 2003 to March 31, 2003	2.50 to 1.0
April 1, 2003 and thereafter	2.75 to 1.0
	The requirements for leverage ratio are:
Period	Ratio
July 1, 2001 to Sept. 30, 2001	5.80 to 1.0
Oct. 1, 2001 to Dec. 31, 2001	6.00 to 1.0
Jan. 1, 2002 to March 31, 2002	6.50 to 1.0
April 1, 2002 to June 30, 2002	6.50 to 1.0
July 1, 2002 to Sept. 30, 2002	5.90 to 1.0
Oct. 1, 2002 to Dec. 31, 2002	5.40 to 1.0
Jan. 1, 2003 to March 31, 2003	4.75 to 1.0
April 1, 2003 to June 30, 2003	4.00 to 1.0
July 1, 2003 and thereafter	3.75 to 1.0
End

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