Credit Suisse and Deutsche Bank have agreed to settle Salt Lake City, Utah-based Huntsman Corporation’s claims and end the ongoing trial against them in Texas state court for fraud and tortious interference in connection with Huntsman’s terminated merger agreements with Basell and Hexion Specialty Chemicals.
Under the terms of the settlement agreement, the Banks are providing $632 million in cash, $500 million senior secured term loan financing, 7 year term at LIBOR + 2.25%, $600 million unsecured note financing, 7 year term at 5.5%, $12 million reimbursement of litigation costs to Huntsman.
Peter Huntsman, President and CEO, stated: “This settlement with the Banks marks a very successful conclusion to this litigation for the company and all of its stakeholders. The cash and financing will enhance our already enviable cash position to more than approximately $1.7 billion and provide us much greater flexibility as we manage our business. The financing offers us a much lower average cost of borrowing and extends the maturities of our borrowings such that the earliest meaningful maturity is July 2012. We are well positioned to prosper as we move forward past this concern.”
The banks said: “While we believe strongly in the merits of our case, we felt it was in our best interests to resolve the litigation for $316 million each. We are pleased to have the litigation behind us.”
