Huntsman Announces Completion of Financing Transactions

Company Also Announces Early Tender Results for Cash Tender Offer for Senior Subordinated Notes due 2014

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Sep 27, 2010, 06:28 ET

THE WOODLANDS, Texas, Sept. 27 /PRNewswire-FirstCall/ -- Huntsman Corporation (NYSE: HUN) today announced that on September 24, 2010, its wholly-owned subsidiary, Huntsman International LLC, consummated its previously announced $350 million offering of senior subordinated notes due 2021 (the "2021 Notes"). The 2021 Notes will carry an interest rate of 8 5/8% and will mature on March 15, 2021.

The company also announced that Huntsman International used approximately $183 million of the net proceeds of the offering to purchase approximately euro 132 million (approximately $177 million equivalent) in aggregate principal amount of its 6 7/8% Senior Subordinated Notes due 2013 in a tender offer conducted outside the United States.

Huntsman International intends to use the remaining net proceeds to purchase a portion of its senior 7 7/8% Senior Subordinated Notes due 2014 (the "2014 Notes") in connection with its previously announced cash tender offer for the 2014 Notes. As of 5:00 p.m., New York City time, on September 24, 2010, the early tender date, holders had validly tendered an aggregate principal amount of approximately $159 million of 2014 Notes in the tender offer. Notes tendered in the tender offer may no longer be withdrawn, except as required by law. Subject to the terms and conditions of the tender offer, the company expects to pay for 2014 Notes that have been validly tendered and not validly withdrawn on the business day after the October 8, 2010 expiration date for the offer.

Huntsman International expects to incur a charge of approximately $14 million for the early retirement of the notes purchased in the tender offers.

Huntsman will also increase the size of its revolving credit facility from $225 million to $290 million. There are currently no borrowings under this facility.

Goldman, Sachs & Co. is serving as the dealer manager for the U.S. Tender Offer. Global Bondholder Services Corporation is serving as the depositary and as the information agent for the U.S. Tender Offer. Requests for copies of the Offer to Purchase and related Letter of Transmittal, which contain the full terms and conditions of the U.S. Tender Offer, may be directed to Global Bondholder Services Corporation by telephone at (866) 540-1500 (toll-free) or (212) 430-3774 (collect), or in writing at 65 Broadway, Suite 404, New York, New York 10006. Questions regarding the tender offer may be directed to Goldman, Sachs & Co. at (800) 828-3182 (toll-free) or (212) 902-5183 (collect).

This announcement is neither an offer to purchase nor a solicitation of an offer to sell any of the Notes or any other securities. The U.S. Tender Offer is not being made to holders in any jurisdiction in which the making or acceptance thereof would be unlawful. The U.S. Tender Offer is made only by and pursuant to the terms and conditions of the Offer to Purchase and the related Letter of Transmittal. No recommendation is made as to whether holders of the 2014 Notes should tender their Notes.

Forward-Looking Statements:

Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. In addition, the completion of any transactions described in this release is subject to a number of uncertainties and closing will be subject to approvals and other customary conditions. Accordingly, there can be no assurance that such transactions will be completed or that the company's expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

SOURCE Huntsman Corporation