The proceeds of this facility have been partially used to retire Solutia's former bank credit facility. Solutia also announced that it and Astaris LLC, its 50/50 joint venture with FMC Corporation, have amended Astaris' credit agreement with Astaris' bank lenders so as to remove security interests in certain Solutia assets and to replace those interests with a $67 million letter of credit, issued under Solutia's new credit facility. The letter of credit will reduce dollar for dollar as future keepwell payments to Astaris
Solutia estimates its 2004 pro-forma annual interest expense will be approximately $120 million. At quarter end, the company's pro-forma liquidity taking into consideration the impact of the new credit facility, i.e., posting of the $67 million Astaris letter of credit and fees, was approximately $150 million.