New Issue: Solutia sells $300 million 7 7/8% 10-year notes at 99.5 to yield 7.948%

By Paul A. Harris

St. Louis, March 2 - Solutia Inc. priced a $300 million issue of 7 7/8% 10-year senior notes (B2/B+/) at 99.5 to yield 7.948% on Tuesday, according to an informed source.

The quick-to-market deal priced in line with the 7 7/8% to 8% price talk.

Jefferies & Co. Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc. and Fifth Third Securities, Inc. were the underwriters.

Proceeds will be used for general corporate purposes, which may include the funding of potential acquisitions, including, if consummated, the acquisition of Etimex Solar, and the repayment of debt.

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

Issuer:	Solutia Inc.
Face amount:	$300 million
Proceeds:	$298.5 million
Maturity:	March 15, 2020
Securities:	Senior notes
Underwriters:	Jefferies & Co. Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Fifth Third Securities, Inc.
Coupon:	7 7/8%
Price:	99.5
Yield:	7.948%
Call features:	Callable on March 15, 2015 at 103.938, 102.625, 101.313, par on and after March 15, 2018
Equity clawback:	35% at 107.875 until March 15, 2013
Trade date:	March 2
Settlement date:	March 9
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	7 7/8% to 8%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.