Investing
Solutia's Second Secondary Comes At Deep Discount (SOA)
Published:
Last Updated:
We have seen a secondary offering now priced out of Solutia Inc. (NYSE: SOA). The company sold 10,714,284 shares of common stock at a price of $14.00 per share to raise some $150 million in gross proceeds and $145 million in net proceeds.
The company listed the use of funds from the offering to repay theremaining $128 million balance on its 15.5% bridge credit facility andfor general corporate purposes. This will pay off the facility in full.The joint underwriters were listed as Deutsche Bank and Jefferies.
Unfortunately, this was at a steeper discount than many such secondaryofferings. Shares closed at $15.49 yesterday and shares have traded ina range of $11.02 to $15.98 since it has relaunched as a stock in lateMarch. The good news is that this closes that bridge financing out for good.
What is interesting is that the company just on August 11 sold more than 22 million shares of common stock at $13.00 to put $277 million towards the $400 million bridge credit facility. The company had previously stated that it planned to repay this facility before the end of February 2009.
Jon C. Ogg
August 21, 2008
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.