Huntsman Corporation HUN declared that it has completed its earlier announced offering of €300 million (roughly $323.3 million) in aggregate principal amount of senior notes due 2025 through Huntsman International LLC, its fully-owned subsidiary.
The company plans to use the net proceeds from the notes offering to repay a part of its 8.625% Senior Subordinated Notes due 2021 and to pay related accrued interests. Huntsman anticipates an additional charge of $21 million associated with the early redemption of debt in the second quarter of 2015.
Huntsman stated that it will continue to reduce the cost of borrowing with the issuance of these euro notes. Further, Huntsman’s annual interest expense will also decline by around $11 million. Moreover, the company looks forward to issue more euro-denominated notes to reduce its net long-term euro cash flow position.
Huntsman is amongst the world's largest manufacturers of differentiated and commodity chemical products for a variety of industrial and consumer applications. The company is expected to benefit from expanding margins owing to the declining costs of raw materials stemming from falling oil prices.
Huntsman has the broadest specialized pigments portfolio in the industry, following its acquisition of Rockwood Holdings’ performance additives and TiO2 pigments businesses on Oct 1, 2014. With this buyout, the company is poised to better serve its customers through a broader range of products.
Huntsman currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the diversified chemical space include Asahi Kasei Corp. AHKSY, Innospec Inc. IOSP and Air Products & Chemicals Inc. APD. While Asahi Kasei and Innospec sport a Zacks Rank #1 (Strong Buy), Air Products carries a Zacks Rank #2 (Buy).
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