NOVA stock jumps on report of a possible funding deal

04 February 2009 19:47  [Source: ICIS news]

(adds dropped word paragraph 3)

HOUSTON (ICIS news)--Shares of Canadian producer NOVA Chemicals rose 74% on Wednesday on the New York Stock Echange, following a report that the company could reach a $100m (€77m) funding agreement.

NOVA needs to raise $100m in financing by 28 February to retain access to its credit facilities, according to Standard & Poor's Ratings Services (S&P).

So far, NOVA has made no further announcements about financing, said Greg Wilkinson, NOVA spokesman. "We remain confident about our ability to work with our lenders going forward."

According market sources cited by the Globe and Mail, NOVA may raise the $100m through a bond issue to Alberta Investment Management Corp (AIMCo).

A spokesman for AIMCo said the report was wrong.

NOVA could also borrow money from ATB Financial, the Globe and Mail reported.

ATB Financial did not immediately return calls seeking comment.

Shares of NOVA reached $1.91 as of 14:23 hours New York time (19:23 GMT), up 81 cents.

($1 = €0.77)

For more on NOVA visit ICIS company intelligence
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By: Al Greenwood
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