Apollo Pays Huntsman $700 Million to Terminate $6.5 Billion LBO

Apollo Management LP, the private-equity firm run by Leon Black, agreed to pay $700 million to Huntsman Corp. to terminate an acquisition of the chemical maker by its Hexion Specialty Chemicals Inc. unit.

Apollo will pay Huntsman $425 million in cash and buy $250 million of convertible notes, Columbus, Ohio-based Hexion said yesterday in a statement. Hexion said it expects Credit Suisse AG and Deutsche Bank AG, lenders on the $6.5 billion leveraged buyout, to fund a $325 million breakup fee to Huntsman.