The amendment would also provide for a six-month extension of the facility, through June 19, 2006. The size of the $525 million facility would not change. Citigroup Global Markets Inc. will act as lead arranger.
'Considering Solutia's significantly improved financial performance and the strong market conditions, we may have an opportunity to achieve a lower interest rate on our credit facility, which would generate savings for the Company,' said Jeffry N. Quinn, president and CEO, Solutia Inc. 'In addition, although we ultimately may not need the proposed extension through June 19, 2006, it would provide us with greater flexibility should we require more time to achieve the optimal resolution to our Chapter 11 case.'
The proposed amendment, if approved by the lender group, would require Bankruptcy Court approval. The Company expects approval of the proposed amendment, but no assurances can be given that the lenders or the Court will approve the amendment.
This press release contains forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by the forward looking statements. Assumptions and other important factors that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, among other things: (i) the ability of Solutia to develop, prosecute, confirm and consummate one or more Chapter 11 plans of reorganization; (ii) the potential adverse impact of the Chapter 11 filing on Solutia's operations, management and employees, and the risks associated with operating businesses under Chapter 11 protection; (iii) the ability of Solutia to comply with the terms of the DIP financing facility; (iv) world economic conditions, competitive pressures, gain or loss of significant customers, labor relations and disruption of operations, raw material and energy costs, currency and interest rate fluctuations, success in implementing pricing actions and managing spending, operating rates, cost of debt, environmental compliance and remediation and other factors; (v) customer response to the Chapter 11 filing; and (vi) the risk factors or uncertainties listed from time to time in Solutia's filings with the Securities and Exchange Commission and with the U.S. Bankruptcy Court in connection with the Company's Chapter 11 filing. Other factors and assumptions not identified above are also relevant to the forward-looking statements, and if they prove incorrect, could also cause actual results to differ materially from those projected.