MOSCOW (MRC) -- Huntsman Corporation has announced that it has completed its previously announced EUR300 million offering of 4.25% Senior Notes due 2025 through its wholly owned subsidiary, Huntsman International LLC, as per the company's press release.
Huntsman intends to use the net proceeds from the offering to redeem a portion of its 8.625% Senior Subordinated Notes due 2021 and pay associated accrued interest. In connection with this transaction, Huntsman expects to incur charges of approximately USD21 million related to the early extinguishment of debt in the second quarter of 2015.
Kimo Esplin, Executive Vice President and CFO, stated, "We continue to lower the cost of borrowing with the issuance of these Euro notes. Our annual interest expense will decrease by approximately USD11 million. In addition, denominating more of our debt in Euro currency will reduce our net long Euro cash flow position."
As MRC wrote previously, in October 2014, Huntsman commenced preliminary engineering to expand production of methylene diphenyl diisocyanate (MDI) by investment in a new, world-scale MDI plant at its complex in Geismar, Louisiana, US. The 400,000-tpy expansion will leverage the significant advantages of the Geismar site, with its access to US shale gas, strong logistics base and excellent integration. The new capacity is expected to come on-stream in 2018 and will enable Huntsman to further support the global growth of its customers.
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately USD13 billion including the acquisition of Rockwood’s performance additives and titanium dioxide businesses. The company's chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. Huntsman operates more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within the company's 5 distinct business divisions.