High Yield Chemicals Quarterly – July 2026

研报英文原文证据摘录

High Yield Chemicals Quarterly – July 2026

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Chemicals Quarterly Overview

Industry Overview

Top Chemical Pick: HUN 2.95s ‘31 21 July 2026

Huntsman’s 2.95% Sr. Nts. ‘31 (OW) are our top HY chemicals pick this quarter. We see a High Yield

potentially attractive catalyst in the announced Olin/Huntsman merger, as the HUN United States

2.95s ‘31 could benefit from a Change of Control. If Olin fails to obtain the direct Chemicals

merger path which requires 67% approval and instead pursues subsidiary merger

Roger Spitz

structure which only requires 50% approval, Olin would become the direct owner of Research Analyst

Huntsman, which we believe could satisfy the Change of Control definition. With OLN BofAS +1 646 855 6946

paying 15.5x LTM EBITDA (excluding synergies) for HUN, we think it is more likely to roger.spitz@bofa.com

achieve the subsidiary merger path. Combined with the applicable Ratings Event Olivia Cui, CFA

requirement, this could allow bondholders to put the bonds at 101% of par, providing Research Analyst BofAS

meaningful upside relative to current trading levels. +1 646 855 6531

olivia.cui@bofa.com

Good times in chemicals proved fleeting

The commencement of the wind-down of the Iranian War, and the concomitant decline

Exhibit 1: Table of Contentsin crude oil prices has driven commodity chemical and plastics prices lower, very likely

July Quarterlycausing price/cost spread compression. We expect chemical price/cost spread to remain

above pre-War levels for many quarters, but bond prices have already largely priced in Arxada 4-7

the new (and pre-War) normal of challenging times in commodity chemicals. That said, Ashland 8-11 Avient 12-15

we believe post-War spreads will remain at least somewhat above pre-War levels.