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Huntsman Seeking Commitments for Additional Loans

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Chemical company Huntsman Corporation (HUN - Free Report) is set to seek commitments for $100 million in aggregate principal amount of additional term B loans through its fully-owned subsidiary, Huntsman International LLC, which is the ‘Borrower’.

Citigroup Global Markets Inc., the U.S.-based brokerage and securities arm of banking behemoth Citigroup, Inc. (C - Free Report) , will be the lead arranger for the additional term B loans. HSBC Securities (USA) Inc., a subsidiary of HSBC Holdings plc , will be the co-manager for the additional term loans under the credit agreement, dated as of Aug 16, 2005, as amended among the borrower, the guarantors party and the lenders party.

JPMorgan Chase Bank, N.A, the actual trustee of JPMorgan Chase & Co. (JPM - Free Report) , will be the administrative agent pursuant to which term loans were previously extended to the Borrower (collectively, the Existing Term Loans). The additional term B loans will be treated as a single class with, and will hold same terms as, one or more classes of Existing Term Loans had earlier.

Huntsman released its second-quarter 2013 results on Jul 31. The company saw its second-quarter 2013 profit slide, as it had to contend with pricing pressure in its titanium dioxide (TiO2) pigment business.  

The Utah-based company posted a profit of $47 million or 19 cents a share in the reported quarter, a 62% year-over-year plunge. The bottom line was also hit by higher restructuring, impairment and plant closing costs.

Barring one-time items (including restructuring charges), earnings were 39 cents per share. That trailed the Zacks Consensus Estimate by a penny and fell well below the year-ago adjusted earnings of 61 cents a share.

Revenues fell roughly 3% year over year to $2,830 million in the reported quarter, but managed to beat the Zacks Consensus Estimate of $2,767 million. Higher sales in the textile effects business was more than masked by declines across polyurethanes, advanced materials and pigments franchises.

Huntsman currently carries a Zacks Rank #3 (Hold).

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