Huntsman subsidiary to redeem 11½% senior notes due 2012 at 102.875

By Susanna Moon

Chicago, July 7 - Huntsman Corp. said its wholly owned subsidiary Huntsman International LLC has sent a notice of redemption to holders of all outstanding 11½% senior notes due 2012, of which $198 million was outstanding as of March 31.

The company will redeem the notes on Aug. 3 at 102.875% of par plus accrued interest.

Huntsman International previously sent a notice of redemption to holders of all outstanding 11 5/8% senior secured notes due 2010, of which $295 million was outstanding as of March 31. The notes will be redeemed July 23 at 102.906% plus accrued interest.

"Following our settlement with the banks for more than $1.7 billion in cash and financing we are reducing our highest cost and nearest term maturities of debt," Kimo Esplin, executive vice president and chief financial officer, said in a press release.

"This debt reduction will eliminate all meaningful debt maturities until 2013. Annual interest expense savings are approximately $60 million and when compared to the low cost financing received through the settlement for the same amount the net annual interest expense savings is greater than $30 million," Esplin said.

Huntsman, a Woodlands, Texas, manufacturer of differentiated chemicals, took Credit Suisse and Deutsche Bank to court after they backed out of their commitment to fund a merger of Huntsman and Hexion Specialty Chemicals, Inc.

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