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Huntsman (HUN) Announces Revolving Credit Facility Worth $1.2B

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Huntsman Corporation (HUN - Free Report) recently announced that its fully-owned subsidiary, Huntsman International LLC, entered into a new $1.2 billion senior unsecured, sustainability-linked revolving credit facility. This replaces the current $1.2 billion senior unsecured revolving credit facility expiring in May, 2023.

The facility is slated to mature on May 20, 2027, and has better terms and lower fees. It also has provisions to extend the maturity by up to two more years and boost the facility size by $500 million. Its sustainability-linked attribute includes modifications to the commitment fee and borrowing rate related to the company's performance in intensity reductions for both greenhouse gas emissions and water consumption.

Huntsman stated that it takes pride in its role in creating a more sustainable future. The company noted that linking its revolving credit facility to sustainability objectives supports its commitment to providing innovative solutions for a low-carbon and more sustainable economy.

Shares of Huntsman have increased 24% in the past year compared with a 9.2% decline of the industry.

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The company, in its last earnings call, stated that it expects continued strong results in the second quarter of 2022. It expects to complete the Geismar MDI splitter project in June 2022, which will expand the differentiated Polyurethanes business in the Americas. It anticipated balance sheet strength and expected cash flow to provide flexibility and enable it to return cash to shareholders.

 

Zacks Rank & Other Key Picks

Huntsman currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Albemarle Corporation (ALB - Free Report) and Cabot Corporation (CBT - Free Report) .

Allegheny has a projected earnings growth rate of 869.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 27.3% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 6.2% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle has a projected earnings growth rate of 175% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 85.8% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 22.5%. ALB has gained 48.2% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently carrying a Zacks Rank #2, has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 5.2% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 9.7% over a year.