KINGSPORT, Tenn., July 2, 2012 Eastman Chemical Company (Eastman NYSE:EMN) announced that Solutia Inc. (Solutia), which on July 2, 2012 became a wholly owned subsidiary of Eastman, will redeem all of Solutias outstanding 8-3/4% Senior Notes due 2017 (the 8-3/4% Notes) and all of Solutias outstanding 7 7/8% Senior Notes due 2020 (the 7-7/8% Notes and, together with the 8-3/4% Notes, the Notes). In connection with Eastmans completion of its acquisition of Solutia, Solutia has irrevocably deposited amounts with the trustee with respect to the 8-3/4% Notes and the 7-7/8% Notes sufficient to fund the redemptions and to satisfy and discharge the Notes.
On August 1, 2012 (the Equity Claw Redemption Date), Solutia will redeem (i) $129,000,000 in principal amount of the 8-3/4% Notes (the 8-3/4% Notes Equity Claw Redemption), and (ii) $91,000,000 in principal amount of the 7-7/8% Notes (the 7-7/8% Notes Equity Claw Redemption). Solutia will redeem (i) the 8-3/4% Notes at a redemption price of 108.750% of their principal amount, plus accrued and unpaid interest to, but not including, the Equity Claw Redemption Date, and (ii) the 7-7/8% Notes at a redemption price of 107.875% of their principal amount, plus accrued and unpaid interest to, but not including, the Equity Claw Redemption Date.
On August 2, 2012 (the Make-Whole Redemption Date), Solutia will redeem (i) the remaining $260,000,000 in principal amount of the 8-3/4% Notes outstanding after the 8-3/4% Notes Equity Claw Redemption, at a redemption price of 100% of their principal amount, plus the 83/4% Notes Applicable Premium (as defined below) and accrued and unpaid interest to, but not including, the Make-Whole Redemption Date, and (ii) the remaining $195,000,000 in principal amount of the 7-7/8% Notes outstanding after the 7-7/8% Notes Equity Claw Redemption, at a redemption price of 100% of their principal amount, plus the 7-7/8% Notes Applicable Premium (as defined below) and accrued and unpaid interest to, but not including, the Make-Whole Redemption Date. The 8-3/4% Notes Applicable Premium means the greater of: (1) 1.0% of the principal amount of the 8-3/4% Notes and (2) the excess, if any, of (i) the present value at the Make-Whole Redemption Date of (a) 104.375%, plus (b) all required interest payments due on the 8-3/4% Notes through November 1, 2013 (excluding accrued but unpaid interest to the Make-Whole Redemption Date), computed using a discount rate equal to the Treasury Rate (as defined) as of the Make-Whole Redemption Date plus 50 basis points; over (ii) then outstanding principal amount of the 8-3/4% Notes. The 7-7/8% Notes Applicable Premium means the greater of: (1) 1.0% of the principal amount of the 7-7/8% Notes and (2) the excess, if any, of (i) the present value at the Make-Whole Redemption Date of (a) 103.938%, plus (b) all required interest payments due on the 7-7/8% Notes through March 15, 2015 (excluding accrued but unpaid interest to the Make-Whole Redemption Date), computed using a discount rate equal to the Treasury Rate (as defined) as of the Make-Whole Redemption Date plus 50 basis points; over (ii) then outstanding principal amount of the 7-7/8% Notes.
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intentions. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements, including, without limitation, statements regarding the
redemption of the Notes; and any assumptions underlying any of the
foregoing. 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
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