THE WOODLANDS, Texas - Huntsman Corporation (NYSE: NYSE:HUN) announced on Tuesday that its subsidiary, Huntsman International LLC, has set the price for its $350 million senior notes offering, due in 2034. The notes, set to close on September 26, 2024, will be offered at 99.640% of their principal amount with an annual interest rate of 5.700%.
The company plans to allocate the net proceeds from this offering for general corporate purposes, which includes the repayment of existing debt. This move is part of Huntsman's broader financial strategy to manage its capital and liabilities.
A consortium of banks, including BofA Securities, Citigroup Global Markets, and J.P. Morgan Securities, among others, will manage the book-running for the offering. Barclays Capital, U.S. Bancorp Investments, and Zions Direct will act as senior co-managers, with Academy Securities serving as the co-manager.
This offering follows an effective shelf registration statement with the U.S. Securities and Exchange Commission that became automatically effective on August 9, 2024. Interested parties can obtain copies of the prospectus supplement and accompanying prospectus from the leading managers' offices.
Huntsman Corporation, a global manufacturer and marketer of specialized chemicals, reported revenues of approximately $6 billion from continuing operations in 2023. With a workforce of around 6,000 associates, the company operates over 60 facilities across roughly 25 countries.
The press release also contains forward-looking statements regarding the company's future operations and market performance. However, it is important to note that these statements are subject to various risks and uncertainties, including economic conditions, market volatility, and operational disruptions, among other factors.
This news article is based on a press release statement from Huntsman Corporation.
"In other recent news, Huntsman Corporation reported Q2 2024 adjusted EBITDA of $131 million, slightly above the Bloomberg consensus estimate. Deutsche Bank and Goldman Sachs, however, have both revised their price targets for the company's shares to $23.00, maintaining their respective 'Hold' and 'Sell' positions. Deutsche Bank's analysis suggests that Huntsman's growth in earnings will rely on stronger economic growth in China, some growth in Europe, and a recovery in the U.S. housing market. Huntsman's key end market, construction, is currently showing only modest signs of improvement.
The company also reported a volume increase of 9% year-over-year and 8% quarter-over-quarter in Q2 2024, which has led to improved margins. Despite these improvements, the advanced materials business is facing a negative price mix due to changes in product mix, and challenges in the Chinese joint venture may impact the polyurethanes business.
Lastly, Huntsman Corporation is actively considering mergers and acquisitions for both vertical and horizontal integration, while maintaining a focus on cash discipline, limiting discretionary spending, and preserving a robust balance sheet. These are the recent developments for Huntsman Corporation."
InvestingPro Insights
As Huntsman Corporation (NYSE: HUN) proceeds with its strategic financial management through the issuance of senior notes, the market is closely observing the company's performance metrics. The InvestingPro data provides a snapshot of Huntsman's current financial health and market position.
InvestingPro data shows Huntsman Corporation with a market capitalization of $4.11 billion, reflecting the company's size and market value. Despite a challenging period, with revenue showing a decrease of 13.26% over the last twelve months as of Q2 2024, the company's dividend yield stands at an attractive 4.39%. This is particularly noteworthy for income-focused investors, considering that Huntsman has maintained dividend payments for 18 consecutive years, a testament to its commitment to shareholder returns.
The company's stock is known for its low price volatility, an InvestingPro Tip that suggests stability in its share price movements. Such stability can be appealing to conservative investors, especially in an environment where the market is experiencing fluctuations. Moreover, analysts predict that the company will be profitable this year, which could signal a turnaround from the previous twelve months where the company was not profitable.
For those considering an investment in Huntsman Corporation, there are additional InvestingPro Tips available. These tips delve deeper into the company's financials, market expectations, and valuation metrics, providing a comprehensive view for informed decision-making. In total, there are 10 additional InvestingPro Tips listed, which can be accessed for further detailed analysis.
With Huntsman's next earnings date set for October 31, 2024, investors and analysts will be looking for signs of improvement and growth that could impact the company's financial trajectory and market valuation.
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