Nova Chemicals amends terms of total return swap to improve financial flexibility

11-Dec-08

NOVA Chemicals recently announced that it has amended the terms of the total return swap with respect to the US$126 mln of Series A preferred shares of NOVA Chemicals Inc., to eliminate the stock price trigger by which the counter-party would have had the right to terminate the swap. As previously announced, NOVA Chemicals extended the maturity date of the total return swap by one year to October 31, 2009. This amended deal further improves NOVA Chemicals' financial flexibility in today's volatile market conditions. In addition, NOVA Chemicals agreed to settle a forward transaction that was intended to neutralize the mark-to-market impact of two of NOVA Chemicals' cash-settled stock-based compensation plans. Due to the recent decline in the company's share price, this forward transaction is no longer necessary as the hedge is no longer effective. (Press Release)