Huntsman Receives $250 Million from Apollo Affiliates for 10 Year Notes
December 23 2008 - 3:35PM
PR Newswire (US)
Additional $250 million settlement payment also due by year end THE
WOODLANDS, Texas, Dec. 23 /PRNewswire-FirstCall/ -- Huntsman
Corporation (NYSE:HUN) today announced it has received $250 million
from affiliates of Apollo Management, L.P. ("Apollo") from the
issuance of its 10 year convertible notes. The notes were issued
pursuant to Huntsman's previously announced settlement agreement
with Hexion Specialty Chemicals, Inc. ("Hexion"), Apollo and
certain of its affiliates to settle Huntsman's claims against
Hexion, Apollo and its affiliates arising in connection with
Huntsman's terminated Merger Agreement with Hexion. The notes,
which bear interest at 7% per annum, will be convertible to shares
of Huntsman common stock at the holder's option at any time at a
conversion price of $7.857 per share, subject to certain
anti-dilution adjustments. On December 19, Huntsman received a $325
million termination fee provided for in the Merger Agreement.
Together with the $250 million proceeds received today for the
convertible notes and an additional $250 million settlement payment
required to be paid to Huntsman by December 31, 2008, Huntsman
expects to receive payments from Apollo and its affiliates that
total $825 million by year end 2008. The remaining $175 million of
the $1 billion in payments required by the Settlement Agreement
must be made to Huntsman on or before March 31, 2009. About
Huntsman: Huntsman is a global manufacturer and marketer of
differentiated chemicals. Its operating companies manufacture
products for a variety of global industries, including chemicals,
plastics, automotive, aviation, textiles, footwear, paints and
coatings, construction, technology, agriculture, health care,
detergent, personal care, furniture, appliances and packaging.
Originally known for pioneering innovations in packaging and,
later, for rapid and integrated growth in petrochemicals, Huntsman
today has 13,000 employees and operates from multiple locations
worldwide. The Company had 2007 revenues of approximately $10
billion. For more information about Huntsman, please visit the
company's website at http://www.huntsman.com/. 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, financial, economic, competitive, environmental,
political, legal, regulatory and technological factors. In
addition, the completion of any transactions described in this
release is subject to a number of uncertainties and closing will be
subject to approvals and other customary conditions. Accordingly,
there can be no assurance that such transactions will be completed
or that the company's expectations will be realized. The company
assumes no obligation to provide revisions to any forward-looking
statements should circumstances change, except as otherwise
required by applicable laws. DATASOURCE: Huntsman Corporation
CONTACT: Media, Russ Stolle, +1-281-719-6624, or Investor
Relations, Kurt Ogden, +1-801-584-5959, both of Huntsman
Corporation Web Site: http://www.huntsman.com/
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