Olin protects US$500m receivables facility through Huntsman merger

Olin Corporation has extended its US$500m receivables financing programme to July 2028 and amended its terms to accommodate the proposed merger with Huntsman, protecting an important source of working-capital liquidity as the two US chemicals groups prepare to combine.

The amendment, signed on 4 November, moves the programme’s scheduled termination date to 31 July 2028 and introduces provisions allowing the planned OlinHuntsman transaction to proceed without breaching the existing merger restrictions.

Olin Finance Company, the group’s wholly owned financing subsidiary, remains the seller under the receivables purchase agreement, while Olin continues as servicer and performance guarantor. PNC Bank acts as administrative agent, with Toronto-Dominion Bank, Truist Bank and associated funding entities also participating in the structure. PNC Capital Markets is structuring agent.

The size of the programme makes the amendment commercially significant.

At 30 September 2026, Olin had drawn US$465m against its US$500m receivables facility, using US$662.2m of trade receivables as collateral. The company reported just US$34m of additional borrowing availability, with the remaining headroom constrained by the borrowing base rather than simply by the facility’s headline commitment.

Although the legal documents describe a receivables purchase arrangement, Olin accounts for the funding as collateralised borrowing against eligible trade receivables. The distinction matters because the amended agreement preserves an existing source of secured liquidity rather than announcing a new US$500m cash injection.

The changes also address the planned combination with Huntsman. On completion, references to Olin Corporation in the agreement are intended to be replaced by OlinHuntsman Corporation. The merger itself remains subject to outstanding conditions and has not yet closed.

Huntsman also operates separate receivables-backed funding programmes. Its latest disclosures show a US$180m US programme, with US$138m outstanding at the end of September, and a €100m European programme, with €85m outstanding. Those facilities are distinct from Olin’s arrangement and should not be treated as a single combined financing commitment.

For the banks and receivables financiers involved, the amendment illustrates how a major corporate merger can require changes to the legal structure surrounding existing invoice-backed funding. The immediate achievement is continuity: Olin has extended its financing horizon and addressed a potential contractual obstacle before the proposed combination takes effect.