Solutia Europe Completes Refinancing of Euro Notes
St. Louis, August 2, 2006--Solutia Inc., announced that its subsidiary, Solutia Europe SA/NV, through its subsidiary Solutia Services International S.C.A./Comm. V.A., has successfully closed on a new EUR 200 million loan due in 2011.
The new loan is priced at an adjustable rate of EURIBOR plus a margin which currently yields a rate of approximately 5.75% to 6.50%. It replaces SESA's EUR 200 million of 10% Senior Secured Notes that were due in 2008, which were redeemed today at a 3% redemption premium. Citigroup Global Markets Limited has fully underwritten the new loan.
"This new loan will result in significant interest savings for Solutia,'' said Jim Sullivan, senior vice president and chief financial officer, Solutia Inc. "In addition, it provides us with greater flexibility to divest non-core assets. For example, we are now able to complete the previously announced sale of our Pharmaceutical Services business, which we expect to occur later this month.''
