EXHIBIT 99.1
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[Solutia letterhead]
FOR IMMEDIATE RELEASE
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Contacts: Fixed Income Investors: Kevin Wilson - 314-674-4905
Equity Investors: Liesl Livingston - 314-674-7777
SOLUTIA INC. TO OFFER $250 MILLION OF SENIOR SECURED NOTES
ST. LOUIS, Jun.18, 2002 --- Solutia Inc. (NYSE:SOI) announced today
that it will pursue the issuance of $250 million of 7-year, senior secured
notes due 2009. This offering is an integral step in Solutia's refinancing
plan that was originally outlined in Solutia's first quarter earnings
release. The notes will be issued by SOI Funding Corp., a special purpose
entity, that will place the funds into escrow pending the completion of the
Company's refinancing plan, now anticipated to be completed around the end
of July 2002. The Company intends to use the proceeds of the offering to
reduce borrowings outstanding under its revolving credit facility and to
repay its 6.50% Senior Notes due October 2002.
Solutia Inc. is a leading, global manufacturer and marketer of a
wide variety of high-performance chemical-based materials used for a broad
range of consumer and industrial applications. The Company's principal
products and services include plastic films used to make laminated safety
glass for automotive and architectural applications, branded resins and
additives used to produce coatings and adhesives, nylon fibers used to
manufacture commercial and residential carpets, and process research and
development for the pharmaceutical industry.
Solutia Inc. makes this statement to be consistent with the
Securities and Exchange Commission's "fair disclosure" guidelines and in
advance of presentations to investors.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the senior secured notes or any other
securities, nor will there be any sale of the senior secured notes or any
other securities in any state in which such offer, solicitation or sale
would be
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unlawful prior to registration or qualification under the securities laws of
any such state. The senior secured notes will be issued in reliance on the
exemption from the registration requirements provided by Rule 144A. None of
the senior secured notes have been registered under the Securities Act of
1933 and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws.
This press release may contain forward-looking statements, which
involve inherent risks and uncertainties. Statements that are not historical
facts, including statements about Solutia Inc.'s beliefs, plans or
expectations, are forward-looking statements. These statements are based on
current plans, estimates and expectations. Actual results may differ
materially from those projected in such forward-looking statements and
therefore you should not place undue reliance on them. A non-exclusive list
of the important factors that could cause actual results to differ
materially from those in such forward-looking statements is set forth in
Solutia Inc.'s most recent report on Forms 10-K and 10-Q and Solutia Inc.'s
other documents on file with the Securities and Exchange Commission. Solutia
Inc. undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
-oOo-
Source: Solutia Inc.
St. Louis
Date 06/18/02