New Issue: HMP Equity upsizes five-year units to $415.06 million, yields 15.433% with warrants

By Paul A. Harris

St. Louis, April 30 - HMP Equity Holdings upsized its offering of high-yield units to $415.06 million from approximately $320 million and priced it Wednesday to yield 15.433% with warrants for 12% of the company, according to a market source.

The deal was comprised of units made up of one note and a warrant for 2.809 common shares of HMP Equity Holdings. The warrants are for 2,458,257 shares or 12% of the pro forma equity of the company.

The units priced at 47.435. The principal amount is $875 million.

Price talk was for a yield of 15% with warrants.

Credit Suisse First Boston and CIBC World Markets were joint bookrunners.

The issuer is an affiliate of Huntsman International Holdings LLC.

Issuer:	HMP Equity Holdings
Face amount:	$875 million
Proceeds:	$415,056,250 (increased from approximately $320 million)
Security description:	Units comprised of one senior secured note and one warrant
Bookrunners:	Credit Suisse First Boston, CIBC World Markets
Maturity:	2008
Coupon:	0%
Price:	47.435
Yield:	15.433%
Spread:	1,268 basis points
Warrants:	For 2.809 common shares per unit or 2,458,257 shares in total, 12% of pro forma equity of the company
Call features:	Non-callable for 1.5 years, then callable every six months, beginning at 107.50, then declining by 1.5 every six months, to par
Ratings:	Standard & Poor's: B-
Price talk:	15% with warrants

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