FAIRLAWN, Ohio, Oct. 22 /PRNewswire-FirstCall/ -- OMNOVA
Solutions Inc. (NYSE: OMN) today announced the pricing of
$250 million aggregate principal
amount of 7.875% senior notes due 2018 in an offering exempt from
the registration requirements of the Securities Act of 1933.
The Company intends to use the net proceeds from the
offering, together with a new term loan of approximately
$200 million, to fund the purchase
price for the Company's proposed acquisition of Eliokem
International SAS, repay or replace all amounts outstanding under
the Company's existing term loan, and pay related fees and
expenses. The Company expects to close the offering on
November 3, 2010, subject to
customary closing conditions. The net proceeds from the
offering, together with an amount sufficient to redeem the notes,
will be held in escrow until the consummation of the acquisition of
Eliokem. If the acquisition of Eliokem is not consummated for
any reason by January 31, 2011, the
Company will redeem the senior notes.
The senior notes to be offered have not been and will not be
registered under the Securities Act of 1933 and may not be offered
or sold in the United States
absent registration or an applicable exemption from registration
requirements. This press release shall not constitute an
offer to sell or a solicitation of an offer to buy such notes and
is issued pursuant to Rule 135c under the Securities Act of
1933.
OMNOVA Solutions Inc. is a technology-based company with last
twelve month sales through August
2010 of $827 million and a
workforce of approximately 2,300 employees worldwide. OMNOVA
is an innovator of emulsion polymers, specialty chemicals, and
decorative and functional surfaces for a variety of commercial,
industrial and residential end uses. Visit OMNOVA Solutions
on the internet at www.omnova.com.
SOURCE OMNOVA Solutions Inc.
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