| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Solutia Inc. > News item |
Solutia DIP amendments approved, increasing commitment by $300 million, extending term
By Caroline Salls
Pittsburgh, March 14 - Solutia Inc. obtained court approval of its fully underwritten commitment for an amended $825 million of debtor-in-possession financing, maturing March 31, 2007, from Citigroup Global Markets, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
As previously reported, the DIP represents a $300 million increase and more than a nine-month extension over Solutia's current DIP financing.
The amended DIP is made up of a $600 million term loan B, increased from $300 million, and a $175 million revolving credit facility with a $150 million letter-of-credit sublimit.
In addition, the current DIP's $50 million delayed-draw term loan A was converted into a new $50 million portion of the term loan B, making a total size of $650 million for the tranche.
Interest on the term loan is Eurodollar rate plus 425 basis points.
The increased availability will provide the company with additional liquidity for operations and the ability to fund mandatory pension payments that come due in 2006.
According to the motion, the original DIP was set to terminate on June 19, and, although the company said it is possible that its plan of reorganization will be confirmed by then, it wants to assure access to DIP financing to give it adequate time to confirm the plan.
Solutia can repay the DIP financing at any time without prepayment penalties.
Solutia, a St. Louis-based manufacturer and provider of performance films, specialty chemicals and an integrated family of nylon products, filed for bankruptcy on Dec. 17, 2003. Its Chapter 11 case number is 03-17949.
© 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.