Solutia to offer senior secured notes

US chemical, fibre and polymer manufacturer Solutia, Inc. reported on 18 June that it would “pursue the issuance” of US$ 250-mil of seven-year, senior secured notes due in 2009. On 25 April Solutia re…

US chemical, fibre and polymer manufacturer Solutia, Inc. reported on 18 June that it would “pursue the issuance” of US$ 250-mil of seven-year, senior secured notes due in 2009. On 25 April Solutia reported its plans to re-finance both its US$ 800-million credit facility, which matures in August 2002, and its US$ 150 million note, which matures in October 2002, with a combination of long-term notes, a secured term loan and a secured revolving credit facility. Based on the company“s credit ratings and market conditions, Solutia said it expected the interest rates on these new facilities to be higher than the interest rates on its current debt. Solutia also anticipated that the refinancing of both maturities would require additional funds.