June 18, 2009 (FinancialWire) — Solutia Inc. (NYSE: SOA) said it has initiated a public offering of up to 18.5 million shares of new common stock. Jefferies & Co., Inc., is acting as sole book-running lead manager.

Jefferies will have an option to purchase up to an additional 15% of the total offered amount of common stock to cover over-allotments, if any, within 30 days.

As part of the offering, Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situation Fund, L.P. are, collectively, selling up to 6.5 million shares of their Solutia common stock. Solutia will not receive any proceeds from the sale of shares by Harbinger.

Solutia said it would use the proceeds to fully repay its $74 million German term loan and for general corporate purposes.

St. Louis-based Solutia is a performance materials and specialty chemicals company.

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