THE WOODLANDS, Texas,
Dec. 4, 2017 /PRNewswire/
-- Huntsman Corporation (NYSE: HUN) announced today that it
successfully completed its secondary public offering of Venator
(NYSE: VNTR) receiving net proceeds of ~$471
million. Together with cash on hand, Huntsman will repay in
full the $511 million remaining on
its Term Loan B due 2023. Huntsman will no longer have any
senior secured term loans remaining outstanding under its Senior
Credit Facilities.
With this debt repayment, Huntsman will achieve investment grade
type metrics with its trailing twelve month
pro-forma(1) net leverage ratio for the
3rd quarter 2017 standing at about 1.8 times, down from
the 2.2 times reported on its latest earnings call.
Huntsman's annual cash interest expense is expected to decrease by
about $20 million, incremental to the
already reported ~$70 million of
annualized interest savings achieved this year as a result of prior
debt repayments. The precise impact of taxes is still to be
determined, but it is currently estimated to be approximately
$75 million, which will not be paid
until after the first quarter of 2018.
Huntsman now holds a ~55% interest in Venator, which would
reduce to 52% in the event the underwriters exercise their option
to sell up to an additional ~3.3 million shares within 30
days. Subject to existing lock-up agreements, Huntsman
intends to continue to monetize its remaining shares of Venator in
an orderly fashion.
Peter Huntsman, President and CEO
commented:
"This year alone, from the monetization of Venator together
with free cash flow, we will have repaid ~$2.1 billion of debt, and in excess of
$2.6 billion since the beginning of
2016. We have transformed our balance sheet to investment
grade type metrics with pro forma net leverage as of September 30th 2017 of ~1.8
times. We are focused on generating $400 - $600 million
of free cash flow annually and have yet to monetize the remaining
~55% of our interest in Venator. Heading into 2018, the
unprecedented strength of our balance sheet provides us with more
flexibility than we have ever had to further grow our
differentiated and specialty businesses and increase value to
shareholders."
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated and
specialty chemicals with 2016 revenues of more than $7 billion. Our chemical products number in
the thousands and are sold worldwide to manufacturers serving a
broad and diverse range of consumer and industrial end markets. We
operate more than 75 manufacturing, R&D and operations
facilities in over 30 countries and employ approximately 10,000
associates within our four distinct business divisions.
Forward-Looking Statements:
Statements in this
release that are not historical are forward-looking statements.
These statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
in the Huntsman companies' filings with the U.S. Securities and
Exchange Commission. Significant risks and uncertainties may relate
to, but are not limited to, volatile global economic conditions,
cyclical and volatile product markets, disruptions in production at
manufacturing facilities, reorganization or restructuring of
Huntsman's operations, the ability to implement cost reductions and
manufacturing optimization improvements in Huntsman businesses, and
other financial, economic, competitive, environmental, political,
legal, regulatory and technological factors. The company assumes no
obligation to provide revisions to any forward-looking statements
should circumstances change, except as otherwise required by
applicable laws.
(1) Pro forma excludes Venator trailing twelve months
adjusted EBITDA and reflects recent receipt of net proceeds.
Please refer to our most recent presentation on ir.huntsman.com for
the non-GAAP reconciliation.
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SOURCE Huntsman Corporation