Huntsman CORP 8-K

What Happened

• Huntsman Corporation’s wholly owned subsidiary Huntsman International LLC (HI) entered into a Credit Agreement on February 9, 2026 with Citibank, N.A., as Administrative Agent and Collateral Agent, and the lenders, establishing an $800 million senior secured revolving credit facility. The facility matures on February 9, 2031 and replaces the prior credit agreement dated May 20, 2022, which HI terminated and repaid the same day.

Key Details

• Facility size and optional increase: $800 million initial revolving commitments, with the ability to increase commitments by up to $400 million (plus additional amounts) subject to leverage tests and other conditions.
• Security and guarantees: Obligations are secured by a lien on substantially all U.S. personal property assets of HI and certain wholly‑owned domestic subsidiaries and are guaranteed by those subsidiaries.
• Pricing and fees: Borrowings bear interest at HI’s option using Alternate Base Rate, Term SOFR, Adjusted EURIBOR or SONIA (0.00% floor on Alternate Base Rate), with margins tied to HI’s leverage ratio: 0.50%–1.00% for Alternate Base Rate borrowings and 1.50%–2.00% for Term Benchmark/SONIA borrowings. Commitment fees apply quarterly to unused commitments plus customary upfront fees.
• Covenants and defaults: The agreement contains customary representations, affirmative and negative covenants (including restrictions on certain transactions, incurrence of debt and liens, affiliate transactions, and restricted payments/investments) and financial covenants covering a leverage ratio and a fixed charge coverage ratio; lenders have standard remedies, including acceleration, on uncured defaults.

Why It Matters

• This transaction provides Huntsman with committed liquidity through 2031 and replaces its prior facility, which reduces near‑term refinancing risk.
• Terms link borrowing cost to the company’s leverage, so operating results and balance‑sheet metrics will affect interest expense.
• The secured nature of the facility and financial covenants may limit certain corporate actions (e.g., additional debt or large payouts) until covenants are satisfied, which is important for investors monitoring credit risk and capital allocation.