By Paul Deckelman
New York, Oct. 29 – Huntsman Corp. priced an upsized $400 million issue of senior notes due 2022 (B1/B+) on Wednesday via its wholly owned subsidiary, Huntsman International LLC, high-yield syndicate sources said.
The quick-to-market issue priced at par to yield 5 1/8%, in line with market price talk, after it was upsized from an originally announced $300 million.
The Rule 144A/Regulation S offering, which comes with registration rights, was brought to market via joint bookrunning managers J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays Capital Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., HSBC Securities (USA) Inc., PNC Capital Markets LLC, RBC Capital Markets Corp. and RBS Securities Inc.
The bonds are non-callable for the life of the issue, other than a provision allowing the notes to be called at par within three months of the scheduled maturity date of Nov. 15, 2022.
The deal, which priced just hours after its initial announcement, was marketed to investors via a morning investor call.
Huntsman, a specialty chemicals manufacturer based in Salt Lake City, Utah, intends to use the proceeds of the planned offering to redeem a portion of its outstanding 8 5/8% senior subordinated notes due 2020, to pay associated accrued interest and for general corporate purposes.
According to its most recent regulatory filings, Huntsman had $350 million of the 2020 notes outstanding as of Sept. 30. Those bonds are currently callable only via a make-whole call at Treasuries plus 50 basis points, but become callable at a price of 104.3125 on March 15, 2015.
| Issuer: | Huntsman International LLC (wholly owned subsidiary of Huntsman Corp.)
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| Amount: | $400 million (upsized from originally announced $300 million)
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| Maturity: | Nov. 15, 2022
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| Securities: | Senior notes
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| Joint bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays Capital Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., HSBC Securities (USA) Inc., PNC Capital Markets LLC, RBC Capital Markets Corp. and RBS Securities Inc.
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| Coupon: | 5 1/8%
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| Price: | Par
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| Yield: | 5 1/8%
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| Spread: | 293 bps vs. 1.625% U.S. Treasury notes due Nov. 15, 2022
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| Call protection: | Non-callable, except for call at par within three months to maturity
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| Trade date: | Oct. 29
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| Settlement date: | Nov. 13 (T+10)
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| Ratings: | Moody's: B1
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| Standard & Poor's: B+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 5 1/8% area
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| Marketing: | Quick to market
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