v3.26.1
Note 8 - Debt
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

8. DEBT 

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Our outstanding debt, net of debt issuance costs, of consolidated entities consisted of the following (dollars in millions):

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March 31,

  

December 31,

 
  

2026

  

2025

 

Senior credit facilities:

        

Revolving credit facility

 $367  $343 

Senior notes

  1,489   1,488 

Amounts outstanding under A/R programs

  173   152 

Variable interest entities

  5   7 

Other

  22   21 

Total debt

 $2,056  $2,011 

Current portion of debt

 $376  $353 

Long-term portion of debt

  1,680   1,658 

Total debt

 $2,056  $2,011 

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Direct and Subsidiary Debt

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Substantially all of our debt, including the facilities described below, has been incurred by our subsidiaries (primarily Huntsman International). Huntsman Corporation is not a guarantor of such subsidiary debt.

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Certain of our subsidiaries have third-party debt agreements that contain certain restrictions with regard to dividends, distributions, loans or advances. In certain circumstances, the consent of a third party would be required prior to the transfer of any cash or assets from these subsidiaries to us.

 

Revolving Credit Facility

 

On February 9, 2026, Huntsman International entered into a new $800 million secured revolving credit facility (“2026 Revolving Credit Facility”). Borrowings bear interest at the rates specified in the credit agreement governing the 2026 Revolving Credit Facility, which vary based on the type of loan, leverage ratio and debt ratings. The 2026 Revolving Credit Facility has a maturity date of February 9, 2031. Based on the repayment terms of our borrowings under the 2026 Revolving Credit Facility, amounts outstanding are recorded in current portion of debt. Huntsman International may increase the 2026 Revolving Credit Facility commitments by up to $400 million, plus additional amounts, subject to the satisfaction of certain conditions. In connection with entering into the 2026 Revolving Credit Facility, Huntsman International terminated all commitments and repaid all obligations under its 2022 $1.2 billion senior unsecured revolving credit facility (“2022 Revolving Credit Facility”) and recognized loss on early extinguishment of debt of approximately $1 million in the first quarter of 2026.

 

The following table presents certain amounts under our 2026 Revolving Credit Facility as of  March 31, 2026 (monetary amounts in millions):

 

Facility

 

Committed amount

  

Amount outstanding

   

Maturity

2026 Revolving Credit Facility

 $800  $367 (1) 

February 2031

(1)

Total amount outstanding (U.S. dollar equivalent) includes both U.S. dollar and euro borrowings. Interest rates on borrowings under the 2026 Revolving Credit Facility vary based on the type of loan and Huntsman International’s debt ratings. The representative interest rates for U.S. dollar borrowings and euro borrowings as of March 31, 2026 were 1.75% above both Term SOFR and adjusted EURIBOR.
  
 As of March 31, 2026, we had approximately $5 million of unamortized debt issuance costs related to our 2026 Revolving Credit Facility. 
  

 

As of  March 31, 2026, we had an additional $3 million (U.S. dollar equivalent) of letters of credit and bank guarantees issued and outstanding under our 2026 Revolving Credit Facility.

 

Senior Notes

 

As of  March 31, 2026, our senior notes consisted of the following (monetary amounts in millions): 

 

    Unamortized premiums,       
    discounts and       

Notes

 

Amount outstanding

 

debt issuance costs

  

Interest rate

 

Maturity

 

2029 Senior notes

 

$750 ($745 carrying value)

 $5  

4.50%

  May 2029 

2031 Senior notes

 

$400 ($398 carrying value)

  2  

2.95%

  June 2031 

2034 Senior notes

 

$350 ($346 carrying value)

  4  

5.70%

  October 2034 

 

A/R Programs

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Our U.S. accounts receivable securitization program (“U.S. A/R Program”) and our European accounts receivable securitization program (“EU A/R Program” and collectively with the U.S. A/R Program, “A/R Programs”) are structured so that we transfer certain of our trade receivables to the U.S. special purpose entity (“U.S. SPE”) and the European special purpose entity (“EU SPE”) in transactions intended to be true sales or true contributions. The receivables collateralize debt incurred by the U.S. SPE and the EU SPE.

 

Information regarding our A/R Programs as of March 31, 2026 was as follows (monetary amounts in millions):

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Maximum funding

  

Amount

     

Facility

 

availability(1)

  

outstanding

  

Interest rate(2)

 

Maturity

U.S. A/R Program

 $180  $87 

(3)

Applicable rate plus 0.85%

 

December 2028

EU A/R Program

 €100  €75  

Applicable rate plus 1.45%

 

July 2027

  

(or approximately $115)

  

(or approximately $86)

     

(1)

The amount of actual availability under our A/R Programs may be lower based on the level of eligible receivables sold, changes in the credit ratings of our customers, customer concentration levels and certain characteristics of the accounts receivable being transferred, as defined in the applicable agreements.

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(2)

The applicable rate for our U.S. A/R Program is defined by the lenders as the Asset-Backed Commercial Paper Rate. The applicable rate for our EU A/R Program is either Term SOFR, EURIBOR or SONIA (Sterling Overnight Interbank Average Rate). 

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(3)

As of March 31, 2026, we had an additional $5 million (U.S. dollar equivalent) of letters of credit issued and outstanding under our U.S. A/R Program.

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As of March 31, 2026 and December 31, 2025, $331 million and $281 million, respectively, of accounts receivable were pledged as collateral under our A/R Programs.

 

Variable Interest Entity Debt

 

 As of  March 31, 2026, AAC, our consolidated 50%-owned joint venture, had $5 million outstanding under its loan commitments and debt financing arrangements, all of which was classified as current debt on our condensed consolidated balance sheets. We do not guarantee these loan commitments, and AAC is not a guarantor of any of our other debt obligations.

 

Debt Issuance Costs

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We record debt issuance costs related to a debt liability on the balance sheets as a reduction to the face amount of that debt liability. As of both  March 31, 2026 and December 31, 2025, the amount of debt issuance costs directly reducing the debt liability was $7 million. We amortize debt issuance costs using either a straight line or effective interest method, depending on the debt agreement, and record them as interest expense.​

 

Compliance with Covenants

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Our 2026 Revolving Credit Facility contains financial covenants of Huntsman International and its subsidiaries, including regarding a leverage ratio and a fixed charge coverage ratio. The 2026 Revolving Credit Facility also contains other customary covenants and events of default for credit facilities of this type. Upon an event of default that is not cured or waived within any applicable cure periods, in addition to other remedies that may be available to the lenders, the obligations under the 2026 Revolving Credit Facility may be accelerated.

 

The agreements governing our A/R Programs also contain certain receivable performance metrics. Any material failure to meet the applicable A/R Programs’ metrics could lead to an early termination event under the A/R Programs, which could require us to cease our use of such facilities, prohibiting us from additional borrowings against our receivables or, at the discretion of the lenders, requiring that we repay the A/R Programs in full.  

 

As of  March 31, 2026, we believe that we were in compliance with the covenants governing our material debt instruments, including our 2026 Revolving Credit Facility, our A/R Programs and our senior notes.​