Solutia launches $750 million term loan at Libor plus 325-350 bps

By Sara Rosenberg

New York, March 4 - Solutia Inc. launched on Thursday its $750 million term loan due in 2017 with price talk of Libor plus 325 basis points to 350 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

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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