The notes will bear an interest rate of 7.875 percent per annum and will be issued at a price of 99.5 percent of the aggregate principal amount. The notes resulted in net proceeds to the Company of approximately $292 million after deducting underwriting discounts and commissions.
Solutia expects to close the offering on March 9, 2010, subject to customary closing conditions. Solutia intends to use the net proceeds to partially fund Solutia's recently announced acquisition of Etimex Solar GmbH and for general corporate purposes.
Standard & Poor's Ratings Services assigned a B+ rating to the Company's proposed $300 million senior unsecured notes. Moody's Investors Service assigned a B2 on the proposed senior unsecured notes.
Jefferies & Company, Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities are acting as joint book-running managers of the offering.
The notes are being sold under a shelf registration statement filed with the Securities and Exchange Commission. This offering will be made solely by means of a prospectus and prospectus supplement, a copy of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov . Alternatively, copies of the prospectus and the prospectus supplement can be obtained by contacting Jefferies & Company, Inc., 520 Madison Avenue, New York, NY 10022, telephone: 1-888-708-5831; Deutsche Bank Securities Inc., 100 Plaza One, Second Floor, Jersey City, NJ 07311, telephone: 1-800-503-4611; Citigroup Global Markets Inc., 388 Greenwich Street, New York, NY 10013, telephone: 1-877-858-5407; HSBC Securities (USA) Inc., 452 5th Avenue, New York, NY 10018, telephone: 1-212-525-4686 or J.P. Morgan Securities Inc., 270 Park Avenue New York, NY 10017, telephone: 1-212-834-4533.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Solutia Announces Pricing Of $300 Million Of Senior Unsecured Notes
Date: 3 March 2010
Source: Solutia
ST. LOUIS, March 2, 2010 /PRNewswire via COMTEX/ -- Solutia Inc. (NYSE: SOA) today announced that it has priced a public offering of $300 million aggregate principal amount of senior unsecured notes due 2020.