ST. LOUIS, Jan. 9, 2008 (PRIME NEWSWIRE) -- Solutia Inc. (NYSE:SOA) announced today that it is planning to offer $400 million aggregate principal amount of senior unsecured notes, which are expected to mature in 2016. As previously announced by Solutia on October 31, 2007, the notes offering is part of a $2.0 billion exit financing package that would be used to pay certain creditors upon Solutia's emergence from Chapter 11 pursuant to its confirmed plan of reorganization, and for the ongoing operations of the company after emergence. As part of this exit financing package, Solutia also intends to enter into a senior secured asset-based revolving credit facility in the aggregate principal amount of $400 million and a senior secured term loan facility in an aggregate principal amount of $1.2 billion.
The notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States pursuant to Regulation S under the Securities Act. The notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.
The notes will be governed by an indenture that is expected to contain covenants restricting Solutia's ability to, among other things, incur indebtedness, pay dividends, incur liens, and sell assets.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
Forward-Looking Statements
This press release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "may," "will," "intends," "plans," "estimates" or "anticipates," or other comparable terminology, or by discussions of strategy, plans or intentions. These statements are based on management's current expectations and assumptions about the industries in which Solutia operates. These statements, including our intention to issue the notes and enter into the credit facilities, are subject to risks and uncertainties, including without limitation, general market conditions, the market for the company's securities, our ability to satisfy closing conditions, the performance of the company's business and other risks detailed from time-to-time in the company's filings with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in Solutia's most recent Annual Report on Form 10-K, under "Cautionary Statement About Forward Looking Statements," Solutia's quarterly reports on Form 10-Q, and in filings with the U.S. Bankruptcy Court in connection with the Chapter 11 case of Solutia Inc. and 14 of its U.S. subsidiaries. These reports can be accessed through the "Investors" section of Solutia's website at www.solutia.com. The bankruptcy court filings can be accessed by visiting www.trumbullgroup.com. Solutia disclaims any intent or obligation to update or revise any forward-looking statements in response to new information, unforeseen events, changed circumstances or any other occurrence.
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