Huntsman Corp. recently announced an agreement with Credit Suisse and Deutsche Bank (“The Banks”) to settle Huntsman's claims and end the ongoing trial against them in Texas state court for fraud and tortious interference in connection with Huntsman's terminated merger agreements with Basell and Hexion Specialty Chemicals Inc.
Huntsman Corp. recently announced an agreement with Credit
Suisse and Deutsche Bank (“The Banks”) to
settle Huntsman's claims and end the ongoing trial against them in Texas state
court for fraud and tortious interference in connection with Huntsman's
terminated merger agreements with Basell and Hexion Specialty Chemicals Inc.
Under the terms of the settlement agreement, the Banks will provide:
- $620 million in cash
- $500 million senior secured term loan financing (seven-year
term at LIBOR + 2.25%)
- $600 million unsecured note financing (seven-year
term at 5.5%)
- $12 million reimbursement of litigation
costs
"This settlement with the Banks marks a very successful
conclusion to this litigation for the company and all of its stakeholders,”
said Peter Huntsman, president and CEO of Huntsman Corp. “The cash and
financing will enhance our already enviable cash position to more than approximately
$1.7 billion and provide us much greater flexibility as we manage our business.
The financing offers us a much lower average cost of borrowing and extends the
maturities of our borrowings such that the earliest meaningful maturity is July
2012. We are well positioned to prosper as we move forward past this
concern."
For more information, visit
www.huntsman.com.
