April 17, 2009 (FinancialWire) — Chemical maker Huntsman (NYSE: HUN) has entered into a credit agreement waiver with the lenders of its $650 million revolving credit facility. The waiver relaxes the senior secured leverage ratio covenant from 3.75 to 1.00 to five to one for the period measured June 30, 2009 through June 30, 2010.

The company said that the waiver also modifies the definition of consolidated EBITDA and permits Huntsman to add back any lost profits attributable to Hurricanes Gustav and Ike that occurred in 2008. It added that the amount of permitted non-cash impairment and restructuring charges allowed was increased from $100 million to $200 million.

As an incentive to the lenders to agree to these changes, Huntsman offered a payment of 50 basis points to consenting lenders. In addition the LIBOR spread on borrowed funds under the revolving credit facility increased to 400 basis points.

Huntsman said there are currently no borrowings under this facility. Among other things, Huntsman also agreed not to make aggregate restricted payments greater than $100 million plus Available Equity Proceeds.

Company CFO Kimo Esplin said that the waiver allows Huntsman to preserve its ability to freely access the revolver in addition to available cash “even if the economy’s recovery from the present downturn takes longer than expected.”

Woodlands, Texas-based Huntsman is a manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for industries including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.

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