Solutia upsizes ABL revolver to $450 million, beefs up term loan B discount

By Sara Rosenberg

New York, Feb. 4 - Solutia Inc. upsized its five-year asset-based revolving credit facility (Ba1) to $450 million from $400 million, while pricing was left unchanged at Libor plus 175 basis points, according to a market source.

In addition, the company increased the original issue discount on its $1.2 billion seven-year term loan B (B1/B+) to 91 from the 96 area, and a three-year Libor floor of 3.25% was added to the deal, the source said.

Actual spread on the term loan B was left unchanged at Libor plus 350 bps.

Furthermore, the accordion features under both the term loan B and the ABL revolver were eliminated.

Citigroup, Goldman Sachs and Deutsche Bank are the joint lead arrangers and joint bookrunners on the now $1.65 billion deal, up from $1.6 billion.

Proceeds will be used to help pay creditors under the company's plan of reorganization and to fund ongoing operations after its emergence from Chapter 11.

The original issue discount on the term loan B will be funded by a draw on the upsized ABL revolver.

Solutia is a St. Louis-based manufacturer and provider of performance films, specialty chemicals and an integrated family of nylon products.

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