Huntsman Lifts Q4 Adj. EBITDA Guidance - Quick Facts

(RTTNews) - Huntsman Corp.(HUN) said it now expects its fourth quarter adjusted EBITDA to be better than its prior guidance and above the prior year by between 20% and 25%. The increase compared to the previous guidance is being driven by stronger than expected overall demand as well as higher MDI component margins, most notably in Asia.

For the Polyurethanes segment, fourth quarter adjusted EBITDA is now expected to be better than third quarter 2020 adjusted EBITDA by at least 20%.

For the Performance Products segment, fourth quarter adjusted EBITDA is currently expected to be better than third quarter 2020 by nearly 15%.

For the Advanced Materials segment, fourth quarter adjusted EBITDA is now expected to be about in-line with the third quarter 2020.

For the Textile Effects segment, fourth quarter adjusted EBITDA is now expected to be approximately flat with the prior year fourth quarter.

The company said it remains on-track to close on the sale of about 42.5 million shares it holds in Venator Materials to funds managed by SK Capital Partners, LP before year-end 2020.

In addition, the company plans to redeem in full 445 million euros in aggregate principal amount of its 5.125% Senior Notes due 2021 at par with available liquidity.

The redemption date will be January 15, 2021, and the redemption price will equal to 100% of the principal amount of the notes, plus accrued and unpaid interest on the redemption date. Redeeming the notes will reduce the company's interest expense by about $25 million on an annual basis.