Huntsman Corporation (NYSE:HUN) and Venator Materials PLC have announced the completion of the earlier-announced private offering of $375 million principal amount of 5.75% Senior Notes due 2025. The offering has been completed through their fully-owned subsidiaries Venator Materials Corporation and Venator Finance S.a r.l.
As communicated earlier, proceeds from the offering have been funded into escrow pending the IPO of Venator Materials PLC. The proceeds will be used to repay the intercompany debt owed to Huntsman, dividends and other related fees and expenses.
According to Huntsman, the move is a significant milestone in the process of separating its Pigments & Additives business. The notes have been offered to qualified institutional buyers under Rule 144A, which is exempted from registration requirements under the United States Securities Act of 1933.
Shares of Huntsman have moved up around 10.6% over the last three months, outperforming the Zacks categorized Chemicals-Diversified industry’s 6.9% gain.
Huntsman witnessed positive business development in the first quarter of 2017. However, revenues of its Performance Products segment declined in the quarter due to lower sales volume as a result of the sale of the European surfactants business to Innospec Inc. (NASDAQ:IOSP) , which more than offset higher average selling prices and increased volumes in other businesses.
The company’s Advanced Materials segment also witnessed decline in sales owing to lower sales volume, as the company withdrew from certain low-margin businesses in the construction and coatings market. Huntsman also faced higher competitive pressure in the wind market that more than offset growth in some of its high value businesses.
Huntsman currently carries a Zacks Rank #4 (Sell)
Stocks to Consider
Some better-ranked companies in the basic materials space are The Sherwin-Williams Company (NYSE:SHW) and Ternium S.A. (NYSE:TX) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Sherwin-Williams has expected long-term earnings growth rate of 11.4%.
Ternium has expected long-term earnings growth rate of 18.4%.
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