Rhodia delays planned buyback of 6¼% notes

New York, June 4 - Rhodia SA (B3/CCC+) announced changes in the schedule for its planned buyback of its 6¼% notes due 2005.

Rhodia said that the offer will be open from June 7 through June 11, inclusive. It said that a detailed calendar of the offer and its conclusion will be published by Euronext Paris SA.

As previously announced, Rhodia, a French-based specialty chemicals maker, said on June 2 that it would tender for its €500 million of outstanding 6¼% notes as part of the company's financial restructuring.

Rhodia originally said that the buyback offer would begin at 9 a.m., Paris time, on June 4 and would expire at 5 p.m., Paris time, on June 10 (the dates were later revised). Settlement is expected on June 14.

It said that it will pay 102.5% of the notes' principal amount, plus accrued interest up to, but not including, the settlement date.

Tender orders may be revoked at any time up to and including the expiration of the offer period. After the expiration of the offer period, tender orders will be irrevocable.

Rhodia plans to pay for the repurchase with proceeds from a share capital increase in the wake of its recent €470 million equity rights issue, and its recent issue of senior notes. On May 7, Rhodia priced an upsized two-part offering of about €725 million of six-year senior notes in dollar and euro tranches.

Credit Suisse First Boston (Europe) Ltd. and BNP Paribas are the dealer managers for the offer.

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