Banks settle with Huntsman for $1.7B (Dealscape

Credit Suisse Group and Deutsche Bank AG decided not to mess with Texas after all. The two banks announced Tuesday that they had settled a suit Huntsman Corp. brought in Texas state court rather than risk a jury award of as much as $13.8 billion to the chemical company. The banks will share the cost of the $1.73 billion settlement equally.

The two parties started settlement talks just before the trial began on June 15 and reached an agreement in principle by June 19, a source said. They spent the next three days hammering out details of the $1.1 billion in debt that the banks will provide Huntsman, $500 million of which will come through a seven-year senior secured term loan at LIBOR plus 2.25% along with $600 million of seven-year notes at 5.5%. And they'll pay the company $620 million in cash with another $12 million for litigation expenses.

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NOT A SUBSCRIBER? Banks settle with Huntsman for $1.7B Posted on June 24, 2009 10:32 AM Credit Suisse Group and Deutsche Bank AG decided not to mess with Texas after all. The two banks announced Tuesday that they had settled a suit Huntsman Corp. brought in Texas state court rather than risk a jury award of as much as $13.8 billion to the chemical company. The banks will share the cost of the $1.73 billion settlement equally. The two parties started settlement talks just before the trial began on June 15 and reached an agreement in principle by June 19, a source said. They spent the next three days hammering out details of the $1.1 billion in debt that the banks will provide Huntsman, $500 million of which will come through a seven-year senior secured term loan at LIBOR plus 2.25% along with $600 million of seven-year notes at 5.5%. And they'll pay the company $620 million in cash with another $12 million for litigation expenses. This is a free content preview. Subscribers enjoy access to all stories in full as well as second-to-none market intelligence. Dig deeper, with Pipeline. 200 company pages related to Chemicals 20 in-depth transaction records related to Huntsman 10 in-depth reports of Withdrawn M&A deals in the Chemicals sector 8 in-depth transaction records related to Hexion Specialty Chemicals Inc. 10 years of news and analysis archives from the voice of The Deal Economy Most searched keywords Skadden Arps Idearc Inc. Deutsche Bank Amusement parks Deb Shops Windstream Corp. Concho Resources Hanna Andersson Tween Brands Edward Bastian		EXISTING USERS Username Password Forget your password? Missing a product?

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