Huntsman completes restructuring, cuts debt $775 million

New York, Sept. 30 - Huntsman Corp. said it completed a financial restructuring, reducing its debt by $775 million.

Under the transaction, the Salt Lake City chemical company converted $775 million of outstanding bonds and interest into equity. It will also pay past-due interest on its remaining $96 million of bonds.

In addition, Huntsman amended its bank credit facility, extending the maturity to 2007 and entered into a new revolving credit facility.

The Huntsman family retains operational and board control of the company.

Huntsman also said it intends to complete the acquisition of ICI's debt and equity interest in Huntsman International by the second quarter of 2003. That transaction will result in further debt reduction to the combined Huntsman companies.

The Huntsmans announced in June 2002 that Matlin Patterson Global Opportunities Partners LP, Huntsman Corp.'s largest bond holder, had agreed to exchange its bonds and make a contribution of some assets in exchange for equity in a newly established holding company that would own the stock of Huntsman and Huntsman International Holdings debt securities.

The transaction was subject to Huntsman obtaining agreement from its bank group, which subsequently gave unanimous approval to the restructuring.

Matlin Patterson Global Opportunities Partners, a private investment fund, was previously called CSFB Global Opportunities Partners, LP; Credit Suisse First Boston no longer has any affiliation with the fund other than as a limited partner.

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