Hexion buys back $196 million of several series of notes in first quarter for $26 million

By Susanna Moon

Chicago, April 20 - Hexion Specialty Chemicals, Inc. said it purchased $196 million face value of its outstanding debt securities for $26 million in the first quarter ended March 31.

As a result, Hexion will record a gain of $170 million.

Of the $196 million, the company bought $92 million of its 9¾% second-priority senior secured notes due 2014, $80 million of its floating-rate second-priority senior secured notes due 2014 and $24 million of various unsecured debentures due 2016 and beyond.

Hexion said it expects annual cash interest savings of $16 million.

The company also bought $180 million of Hexion LLC's outstanding debt securities for $23 million after the close of the quarter ended March 31.

As previously announced, the company's board of directors authorized Hexion to retire or purchase a portion of outstanding debt through cash purchases in the open market or in privately negotiated deals.

Hexion makes thermoset resins and is based in Columbus, Ohio.

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