Solutia Announces Pricing of $300 Million of Senior Unsecured Notes

ST. LOUIS, March 2 /PRNewswire-FirstCall/ -- Solutia Inc. (NYSE: SOA) today announced that it has priced a public offering of $300 million aggregate principal amount of senior unsecured notes due 2020. The notes will bear an interest rate of 7.875 percent per annum and will be issued at a price of 99.5 percent of the aggregate principal amount.  The notes resulted in net proceeds to the Company of approximately $292 million after deducting underwriting discounts and commissions.

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Solutia expects to close the offering on March 9, 2010, subject to customary closing conditions. Solutia intends to use the net proceeds to partially fund Solutia's recently announced acquisition of Etimex Solar GmbH and for general corporate purposes.

Standard & Poor's Ratings Services assigned a B+ rating to the Company's proposed $300 million senior unsecured notes.  Moody's Investors Service assigned a B2 on the proposed senior unsecured notes.

Jefferies & Company, Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities are acting as joint book-running managers of the offering.

The notes are being sold under a shelf registration statement filed with the Securities and Exchange Commission. This offering will be made solely by means of a prospectus and prospectus supplement, a copy of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov . Alternatively, copies of the prospectus and the prospectus supplement can be obtained by contacting Jefferies & Company, Inc., 520 Madison Avenue, New York, NY 10022, telephone: 1-888-708-5831; Deutsche Bank Securities Inc., 100 Plaza One, Second Floor, Jersey City, NJ 07311, telephone: 1-800-503-4611; Citigroup Global Markets Inc., 388 Greenwich Street, New York, NY 10013, telephone: 1-877-858-5407; HSBC Securities (USA) Inc., 452 5th Avenue, New York, NY 10018, telephone: 1-212-525-4686 or J.P. Morgan Securities Inc., 270 Park Avenue New York, NY 10017, telephone: 1-212-834-4533.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward Looking Statements

This press release contains forward-looking statements, including, but not limited to statements about projected financial performance, which can be identified by the use of words such as "believes," "expects," "may," "will," "intends," "plans," "estimates" or "anticipates," or other comparable terminology, or by discussions of strategy, plans or intentions. These statements are based on management's current expectations and assumptions about the industries in which Solutia operates and Solutia's ability to raise additional funds which is subject to market conditions. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the accuracy of our assumptions, the ability of third parties to finance an acquisition, and those risk and uncertainties described in Solutia's most recent Annual Report on Form 10-K, including under "Cautionary Statement About Forward Looking Statements" and "Risk Factors", and Solutia's quarterly reports on Form 10-Q. These reports can be accessed through the "Investors" section of Solutia's website at http://www.solutia.com/ . Solutia disclaims any intent or obligation to update or revise any forward-looking statements in response to new information, unforeseen events, changed circumstances or any other occurrence.

Corporate Profile

Solutia is a market-leading performance materials and specialty chemicals company. The company focuses on providing solutions for a better life through a range of products, including: Saflex(R) interlayer for laminated glass; CPFilms(R) aftermarket window films sold under the LLumar(R) brand and others; and technical specialties including the Flexsys(R) family of chemicals for the rubber industry, Skydrol(R) aviation hydraulic fluid and Therminol(R) heat transfer fluid. Solutia's businesses are world leaders in each of their market segments. With its headquarters in St. Louis, Missouri, USA, the company operates globally with approximately 3,300 employees in more than 50 locations. More information is available at http://www.solutia.com/ .

SOURCE Solutia Inc.