Solutia sets pricing on $750 million term loan at Libor plus 325 bps

By Sara Rosenberg

New York, March 11 - Solutia Inc. firmed pricing on its $750 million term loan due in 2017 at Libor plus 325 basis points, the low end of talk of Libor plus 325 bps to 350 bps, and added a step-down to Libor plus 300 bps at 2.5 times leverage, according to a market source.

In addition, the original issue discount tightened to 99½ from 99, the source said.

The 1.5% Libor floor was left unchanged.

Deutsche Bank, Jefferies, Citigroup, HSBC Securities and JPMorgan are the joint lead arrangers and joint bookrunners on the deal.

The $1.05 billion senior secured credit facility (Ba2) also includes a $300 million revolver due in 2015.

Proceeds will be used to refinance the company's existing senior secured term loan facility due in February 2014 and the existing senior secured ABL facility due in February 2013.

The loan could also be used to help fund the recently announced acquisition of Etimex Solar GmbH, a supplier of ethylene vinyl acetate encapsulants to the photovoltaic market, from Etimex Holding GmbH for €240 million.

Solutia is a St. Louis-based performance materials and specialty chemicals company.

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