Solutia to repay some bridge loan debt with stock proceeds

By Sara Rosenberg

New York, Aug. 11 - Solutia Inc. will partially repay its $400 million 15.5% bridge loan using proceeds from a common stock offering, according to a news release.

The company priced roughly 22 million shares of its common stock at $13 per share for gross proceeds of about $290 million.

Closing on the stock offering is expected to take place on or around Aug. 14.

The company plans to fully repay the bridge loan prior to the end of February 2009 at which time the loans could be converted by the lenders into notes that mature in February 2015.

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

© 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.