The notes will be issued by SOI Funding Corp., a special purpose entity, that will place the funds into escrow pending the completion of the Company's refinancing plan, now anticipated to be completed around the end of July 2002. The Company intends to use the proceeds of the offering to reduce borrowings outstanding under its revolving credit facility and to repay its 6.50% Senior Notes due October 2002.
Solutia Inc. is a leading, global manufacturer and marketer of a wide variety of high-performance chemical-based materials used for a broad range of consumer and industrial applications. The Company's principal products and services include plastic films used to make laminated safety glass for automotive and architectural applications, branded resins and additives used to produce coatings and adhesives, nylon fibers used to manufacture commercial and residential carpets, and process research and development for the pharmaceutical industry.
Solutia Inc. makes this statement to be consistent with the Securities and Exchange Commission's "fair disclosure" guidelines and in advance of presentations to investors.
Solutia Inc. to offer $250 million of senior secured notes
Solutia Inc. announced that it will pursue the issuance of $250 million of 7-year, senior secured notes due 2009. This offering is an integral step in Solutia's refinancing plan that was originally outlined in Solutia's first quarter earnings release.