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Huntsman (NYSE:HUN) Corporation and its subsidiary, Huntsman International LLC, have entered into an amendment of their existing credit agreement, as per the latest 8-K filing with the SEC. With total debt standing at $2.35 billion and a debt-to-equity ratio of 0.80, the company’s leverage management is crucial. The amendment, dated May 23, 2025, modifies the financial covenants related to the leverage ratio, allowing for an increased maximum permitted ratio of Consolidated Net Debt to Consolidated EBITDA through December 31, 2026, or earlier if certain conditions are met. This period is referred to as the Covenant Relief Period.
During the Covenant Relief Period, the Second Amendment also reduces the general debt and liens baskets and amends the restricted payments covenant. This limits Huntsman International’s ability to make restricted payments for the purpose of providing Huntsman Corporation with funds to redeem its equity interests, subject to certain exceptions. According to InvestingPro analysis, which provides comprehensive financial health scores and detailed metrics for over 1,400 stocks, Huntsman maintains a current ratio of 1.48, indicating adequate short-term liquidity despite these restrictions.
The description of the Second Amendment provided here is a summary and is qualified in its entirety by the full text of the agreement, which is filed with the SEC. This move comes as part of Huntsman’s financial strategy to manage its leverage and maintain financial flexibility.
The filing also includes the company’s financial statements and exhibits, which detail the terms of the Second Amendment and other relevant financial information. The information is based on a press release statement and reflects the company’s latest financial adjustments.
In other recent news, Huntsman Corporation reported its first-quarter 2025 earnings, revealing a slight miss in its earnings per share (EPS) compared to analysts’ expectations. The company posted an EPS of -$0.11, slightly below the forecast of -$0.10, and revenue also fell short at $1.41 billion against the expected $1.5 billion. In response to the challenging financial performance, Huntsman is doubling its cost savings target to $100 million. Additionally, Huntsman and its subsidiary, Huntsman International LLC, have amended their 2022 Revolving Credit Agreement. This amendment adjusts the financial covenant regarding the leverage ratio and restricts certain payments during the Covenant Relief Period. The amendment also reduces general debt and liens baskets until December 31, 2026, or earlier if specific conditions are met. Despite the hurdles, the company is strategically positioning itself by optimizing its manufacturing footprint, particularly in Europe. Huntsman refrained from providing full-year guidance due to ongoing market volatility but anticipates better performance in the second half of 2025.
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