Texas Petrochemicals to restructure acquisition of assets of Huntsman

20-Jun-06

Houston-based Texas Petrochemicals, specializing in C4 hydrocarbons, has entered into an amendment restructuring its acquisition of the assets of Huntsman Corporation's U.S. butadiene business. As per the terms of the amendment, Texas Petrochemicals is to pay US$197.5 million for the assets at closing, subject to customary adjustments. An additional payment of US$70 million will be made when certain objectives to be achieved, related to the resumption of crude C4 supply from Huntsman's light olefins unit located in Port Arthur, Texas. The transaction, expected to close by the end of June 2006, is to be funded through a Term B secured financing, combined with a stand-by letter of credit facility supporting the potential US$70 million obligation.