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

Huntsman Corp., 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.

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