Solutia completes extension & upsizing of debtor-in-possession financing
17 Mar '06
2 min read
Solutia Inc, a leading manufacturer and provider of interlayers for laminated glass, aftermarket window films, specialty chemicals and an integrated family of nylon products, has successfully completed the extension and upsizing of its debtor-in-possession (DIP) credit facility at a reduced interest rate.
Solutia's amended DIP credit facility matures March 31st 2007, which represents a more than nine month extension. The size of the amended DIP credit facility is $825 million, which is an increase of $300 million. The interest rate for the $650 million term loan portion of the DIP credit facility is LIBOR plus 350 basis points, a 75 basis point reduction from the rate on the previous $350 million of term loans.
The revolver portion of the DIP credit facility is unchanged, at $175 million with an interest rate of LIBOR plus 225 basis points.
The DIP credit facility can be repaid by Solutia at any time without prepayment penalties. Citigroup acted as lead arranger in the successful syndication of the financing.
Jim Sullivan, Chief Financial Officer, Solutia Inc, said, "Our ability to successfully upsize and extend our DIP credit facility while reducing our interest rate is indicative of the positive momentum Solutia is gaining as it heads toward emergence from Chapter 11, which we anticipate later this year."
Solutia filed its Plan of Reorganization and Disclosure Statement with the US Bankruptcy Court for the Southern District ofNew York on Feb. 14, 2006. The Disclosure Statement hearing is scheduled for May 1st 2006.
Solutia Inc is a world leader in performance films for laminated safety glass and after-market applications; process development and scale-up services for pharmaceutical fine chemicals; specialties such as water treatment chemicals, heat transfer fluids and aviation hydraulic fluid and an integrated family of nylon products including high-performance polymers and fibers.
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