Solutia Inc. announced on 17 June 2009 that it has initiated a public offering of up to 18.5 million shares of new common stock, the proceeds of which will be used to fully repay its USD 74 million Ge…
Solutia Inc. announced on 17 June 2009 that it has initiated a public offering of up to 18.5 million shares of new common stock, the proceeds of which will be used to fully repay its USD 74 million German term loan, as well as for general corporate purposes. The offering also includes the sale of up to 6.5 million shares of Solutia common stock by Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situation Fund, L.P. The company, however, will not receive any proceeds from the sale of shares by Harbinger. Sole book-running lead manager for the transaction is Jefferies & Company, Inc. which will have an option to purchase up to a further 15% of the total offered amount of common stock to cover over-allotments, if any, within 30 days. A shelf registration on Form S-3 relating to these securities was filed with the Securities and Exchange Commission and became effective on 25 July 2008. Copies of the prospectus supplement relating to these securities may be obtained from Jefferies & Company.