Solutia Initiates Equity Offering

Date: 22 June 2009
Source: Solutia Inc

Date: 22 June 2009

ST. LOUIS, June 17 /PRNewswire-FirstCall/ -- Solutia Inc. (NYSE: SOA) today announced it has initiated a public offering of up to 18.5 million shares of new common stock.

Solutia would use the proceeds to fully repay its $74 million German term loan and for general corporate purposes.
 
As part of the offering, Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situation Fund, L.P. are, collectively, selling up to 6.5 million shares of their Solutia common stock. The company will not receive any proceeds from the sale of shares by Harbinger.
 
Jefferies & Company, Inc., is acting as sole book-running lead manager for the transaction, and will have an option to purchase up to an additional 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 July 25, 2008. Copies of the prospectus supplement relating to these securities may be obtained, when available, from Jefferies & Company, Inc., 520 Madison Avenue, New York, NY 10022 or by calling 1-888-449-2342.
 
This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
 
The completion of this offering is dependent upon, among other factors, market conditions.

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