PolyOne Retires Credit Facility Ahead of Schedule

CLEVELAND, July 7 /PRNewswire-FirstCall/ -- PolyOne Corporation (NYSE: POL) today reported it has fully repaid $40 million of outstanding borrowings from Citicorp USA, Inc., and also terminated the related commitments.  The $40 million Citicorp Revolver and Letter of Credit Facility was scheduled to mature on March 20, 2011.  

"We have been accumulating cash since the first quarter of 2009," said Robert M. Patterson, senior vice president and chief financial officer.  "Driven by earnings growth and prudent working capital management, cash has increased to $241 million as of June 30, 2010 and liquidity is nearly $400 million," Patterson added.  "At this level of liquidity we believe we can comfortably retire the Citi facility early and continue to support our growth initiatives."

Both Standard & Poor's and Moody's have acknowledged the Company's improving financial condition during the second quarter of 2010 with credit rating upgrades.  On April 22, 2010 Standard & Poor's upgraded PolyOne's credit rating to B from B-, and on June 30, 2010 Moody's upgraded PolyOne's Corporate Family rating to Ba3 from B1.

The Company's primary source of liquidity beyond cash remains its accounts receivable facility, which as of June 30, 2010 had availability of $154 million.  This facility expires in May 2012.  

About PolyOne

PolyOne Corporation, with 2009 revenues of $2.1 billion, is a premier provider of specialized polymer materials, services and solutions.  Headquartered outside of Cleveland, Ohio USA, PolyOne has operations around the world.  For additional information on PolyOne, visit our Web site at www.polyone.com.

To access PolyOne's news library online, please visit www.polyone.com/news

Forward-looking Statements

In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance.  They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.  They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance and/or sales.  Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the speed and extent of an economic recovery, including the recovery of the housing and chlor-alkali markets; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks; changes in polymer consumption growth rates in the markets where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions, employee productivity goals and our new global organization structure; an inability to raise or sustain prices for products or services; an inability to maintain appropriate relations with unions and employees; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation.  The above list of factors is not exhaustive.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.  You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.

SOURCE PolyOne Corporation