St. Louis, June 30, 2006--Solutia Inc., announced that its subsidiary, Solutia Europe SA/NV, has received a fully underwritten commitment from Citigroup Global Markets Limited for a EUR200 million loan maturing in 2011 to refinance its EUR200 million of 10% Euro notes due in 2008.
The new loan is priced at EURIBOR plus 2.75%, which is currently about 6%. SESA anticipates closing the transaction on August 1.
Under the terms of the new loan, SESA will also be able to complete the previously announced sale of its pharmaceutical services business, which it expects to occur in August.
"This new financing brings significant benefits to Solutia, and demonstrates the continued confidence the financial markets have in the company,'' said Jim Sullivan, senior vice president and chief financial officer, Solutia Inc. "We project this new financing will result in significant interest savings for Solutia. In addition, it allows us greater flexibility to divest non-core assets, such as our pharmaceutical services business.''
