St. Louis, MO, May 19--Solutia Inc. has launched the process to amend its debtor-in-possession (DIP) financing to improve pricing. 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.
