Hexion Specialty Chemicals Announces Intent to Offer Cash Tender for Debt Securities
COLUMBUS, Ohio – (April 14, 2006) – Hexion Specialty Chemicals today announced its intent to begin a cash tender offer in the near future to purchase all of its 8% Senior Notes, 9.5% Senior Second Secured Notes, and 13.5% Senior Subordinated Notes. To finance the offer, the company has obtained commitments for new senior secured credit facilities, replacing its existing term loan and synthetic letter of credit facilities. In addition, the Company will continue to have access to its existing revolving credit facilities. Hexion expects to use a portion of the borrowings under its new senior secured credit facility to redeem its outstanding Series A preferred stock.
This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consent with respect to the 8% Senior Notes, 9.5% Senior Second Secured Notes, and 13.5% Senior Subordinated Notes of Hexion Specialty Chemicals. The tender offer and consent solicitation will be made solely by the Offer to Purchase and Consent Solicitation Statement.
Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements may be identified by the words “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will” or “intend” and similar expressions. The forward-looking statements contained herein reflect our current views with respect to future events and are based on our currently available financial, economic and competitive data and on current business plans. Actual results could vary materially depending on risks and uncertainties that may affect the Company's operations, markets, services, prices and other factors as discussed in our SEC filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: economic factors such as an interruption in the supply of or increased pricing of raw materials due to natural disasters, competitive factors such as pricing actions by our competitors that could affect our operating margins, and regulatory factors such as changes in governmental regulations involving our products that lead to environmental and legal matters as described in our SEC filings. Additional factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in our Form 10-K for the period ended December 31, 2005 under the caption “Forward-Looking and Cautionary Statements” under Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations. We undertake no obligation to publicly update or review any forwardlooking statement, whether as a result of new information, future developments or otherwise, except as otherwise required by law.
About Hexion Specialty Chemicals
Based in Columbus, Ohio, Hexion Specialty Chemicals combines the former Borden Chemical, Bakelite, Resolution Performance Products and Resolution Specialty Materials companies into the global leader in thermoset resins. Hexion serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion Specialty Chemicals is owned by an affiliate of Apollo Management, L.P. Additional information is available at www.hexionchem.com.
Investors: John Kompa, Director, Investor Relations, Hexion Specialty Chemicals
Media: Peter F. Loscocco Vice President, Public Affairs, Hexion Specialty Chemicals