Huntsman Said to Host Lender Call Tomorrow on $1.35 Billion Loan

Huntsman Corp. (HUN), the chemical maker acquiring Rockwood Specialties Inc.’s titanium dioxide business, will host a lender call tomorrow at 2 p.m. in New York to discuss $1.35 billion in loans to support the purchase, according to a person with knowledge of the transaction.

Bank of America Corp. is leading the financing, which includes a $1.15 billion term loan due in seven years and a $200 million credit line that expires in 3 1/2 years, said the person, who asked not to be identified because terms aren’t set.

Huntsman, which is buying Rockwood’s unit for $1.1 billion, is proposing to pay 3 percentage points to 3.25 percentage points more than the London interbank offered rate, with a 0.75 percent minimum on the lending benchmark on the term piece, the person said. Lenders are offered the debt at 99.5 cents on the dollar.

The Salt Lake City-based company had been seeking permission from lenders to borrow the incremental loans, offering consenting lenders a fee of 15 basis points. The additional debt will result in $45 million to $55 million of interest expense annually, according to a presentation on Huntsman’s website.

In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t. A basis point is 0.01 percentage point.

To contact the reporter on this story: Krista Giovacco in New York at

To contact the editor responsible for this story: Faris Khan at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.