Ashland Delivers Notice of Redemption of Hercules 6.75% Senior Subordinated Notes Due 2029
COVINGTON, Ky., Nov. 17 /PRNewswire-FirstCall/ -- Ashland Inc. (NYSE: ASH)
has delivered a notice of redemption of all 6.75% Senior Subordinated Notes
Due 2029, CUSIP 427056BA3 (the "Notes"), issued by Hercules Incorporated
(NYSE: HPC). Pursuant to an Agreement and Plan of Merger, dated as of July 10,
2008, among Ashland, Ashland Sub One, Inc. and Hercules, Ashland acquired
Hercules, effective Nov. 13, 2008. There is $250 million in aggregate
principal amount of outstanding Notes, which mature by their terms on Oct. 15,
2029.
The redemption date for the Notes is Dec. 15, 2008. The Notes will be
redeemed at a redemption price of 100% of the principal amount plus the
applicable premium of 5.00942% as required by the indenture governing the
Notes, plus accrued interest to Dec. 15, 2008. On Nov. 13, 2008, Ashland, on
behalf of Hercules, deposited with the trustee as trust funds an amount
sufficient to pay and discharge the entire indebtedness on all outstanding
Notes, as well as the applicable premium and interest to the redemption date.
As of Nov. 13, 2008, the Notes were no longer considered to be outstanding
under the indenture.
The details concerning the terms and conditions of redemption are fully
described in a Notice of Redemption mailed on Nov. 13, 2008 to record holders
of Notes. This press release is not a notice of redemption. The redemption is
made solely pursuant to the Notice of Redemption.
About Ashland
Ashland Inc. (NYSE: ASH) provides specialty chemical products, services
and solutions for many of the world's most essential needs and industries.
Serving customers in more than 100 countries, it operates through five
commercial units: Ashland Hercules Water Technologies, Ashland Performance
Materials, Ashland Aqualon Functional Ingredients, Ashland Consumer Markets
(Valvoline) and Ashland Distribution. To learn more about Ashland, visit
www.ashland.com .
Forward-Looking Statements
This news release contains forward-looking statements, within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The statements include those made with respect to
Ashland's operating performance and Ashland's acquisition of Hercules
Incorporated. These expectations are based upon a number of assumptions,
including those mentioned within this news release. Performance estimates are
also based upon internal forecasts and analyses of current and future market
conditions and trends, management plans and strategies, weather, operating
efficiencies and economic conditions, such as prices, supply and demand, cost
of raw materials, and legal proceedings and claims (including environmental
and asbestos matters). These risks and uncertainties may cause actual
operating results to differ materially from those stated, projected or
implied. Such risks and uncertainties with respect to Ashland's acquisition of
Hercules include the possibility that the benefits anticipated from the
Hercules transaction will not be fully realized; the substantial indebtedness
Ashland has incurred to finance the acquisition may impair Ashland's financial
condition; the restrictive covenants under the debt instruments may hinder the
successful operation of Ashland's business; future cash flow may be
insufficient to repay the debt; and other risks that are described in filings
made by Ashland with the Securities and Exchange Commission (the "SEC").
Although Ashland believes its expectations are based on reasonable
assumptions, it cannot assure the expectations reflected herein will be
achieved. This forward-looking information may prove to be inaccurate and
actual results may differ significantly from those anticipated if one or more
of the underlying assumptions or expectations proves to be inaccurate or is
unrealized or if other unexpected conditions or events occur. Other factors,
uncertainties and risks affecting Ashland are contained in Ashland's periodic
filings made with the SEC, including its Form 10-K for the fiscal year ended
September 30, 2007, and Forms 10-Q for the quarters ended December 31, 2007,
and March 31 and June 30, 2008, which are available on Ashland's Investor
Relations website at www.ashland.com/investors or the SEC's website at
www.sec.gov . Ashland undertakes no obligation to subsequently update or
revise the forward-looking statements made in this news release to reflect
events or circumstances after the date of this news release.
