Huntsman (HUN) Announces $1.2 Billion Revolving Credit Facility – May 23, 2022

Hunter’s Society (HUN Free Report) recently announced that its wholly owned subsidiary, Huntsman International LLC, has entered into a new $1.2 billion sustainability-related senior unsecured revolving credit facility. This replaces the existing $1.2 billion senior unsecured revolving credit facility which expires in May 2023.

The facility is expected to mature on May 20, 2027, and has better terms and lower fees. It also plans to extend the maturity for up to two more years and increase the size of the facility by $500 million. Its sustainability-related attribute includes changes to the commitment fee and borrowing rate tied to the company’s performance in reducing intensity for both greenhouse gas emissions and water consumption.

Huntsman said he is proud of his role in creating a more sustainable future. The company noted that tying its revolving credit facility to sustainable development goals supports its commitment to providing innovative solutions for a low-carbon and more sustainable economy.

Shares of Huntsman are up 24% over the past year, compared to an industry decline of 9.2%.

Image source: Zacks Investment Research

The company, in its latest earnings call, said it expects continued strong results in the second quarter of 2022. It expects to complete the Geismar MDI separator project in June 2022, which will expand the differentiated activity of polyurethanes in the Americas. It anticipated the strength of the balance sheet and expected cash flows to provide flexibility and allow it to return cash to shareholders.

Zacks ranking and other key picks

Huntsman currently sports a Zacks rank #1 (Strong Buy).

Some other top-ranked stocks in the base materials space are Allegheny Technologies Inc. (ATI free report), Albemarle Society (ALB free report) and Cabot Corporation (CCT free report).

Allegheny forecasts a profit growth rate of 869.2% for the current year. The Zacks consensus estimate for ATI’s earnings for the current year has been revised up 27.3% in the past 60 days.

Allegheny’s earnings have exceeded Zacks’ consensus estimate in each of the past four quarters. It has a surprise on earnings for the last four quarters of about 128.9% on average. ATI has gained about 6.2% in one year and currently sports a #1 Zacks ranking. You can see the full list of today’s Zacks #1 Rank stocks here.

Albemarle forecasts a profit growth rate of 175% for the current year. The Zacks consensus estimate for ALB’s current-year earnings has been revised up 85.8% in the past 60 days.

Albemarle’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 22.5%. ALB gained 48.2% in one year. The company boasts a No. 1 Zacks rank.

Cabot, who currently carries a No. 2 Zacks rank, has an expected earnings growth rate of 21.5% for the current year. The Zacks consensus estimate for CBT earnings for the current year has been revised up 5.2% in the past 60 days.

Cabot’s earnings have exceeded the Zacks consensus estimate in each of the past four quarters, averaging 16.2%. CBT gained around 9.7% year on year.

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