New Issue: Airgas upsized $400 million 10-year senior subordinated notes yield 7 1/8%

By Paul A. Harris

St. Louis, June 5 - Airgas, Inc. priced an upsized $400 million issue of senior subordinated notes due Oct. 1, 2018 (Ba2/BB+/) at par to yield 7 1/8% on Thursday, according to an informed source.

The yield was printed on top of price talk.

Banc of America Securities LLC, Goldman Sachs & Co. and J.P. Morgan Securities Inc. are joint bookrunners for the Rule 144A with registration rights notes issue, which was upsized from $350 million.

Proceeds will be used to repay revolving credit facility debt.

The prospective issuer is a Radnor, Pa.-based distributor of industrial, medical and specialty gases.

Issuer:	Airgas, Inc.
Amount:	$400 million, increased from $350 million
Maturity:	Oct. 1, 2018
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities LLC, Goldman Sachs & Co., J.P. Morgan Securities Inc.
Lead managers:	BNY Securities, Barclays Capital
Co-managers:	Wachovia Securities, Mitsubishi Securities International, Calyon Securities, PNC Securities, Scotia Capital, Mizuho Securities, NatCity Investments, Daiwa Securities America, SunTrust Robinson Humphrey, RBS Greenwich Capital
Coupon:	7 1/8%
Price:	Par
Yield:	7 1/8%
Spread:	311 bps
Call protection:	Make-whole at Treasuries plus 50 bps for first five years, then callable at a premium
Equity clawback:	Until Oct. 1, 2011 for 35% at 107.125
Trade date:	June 5
Settlement date:	June 10
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	Rule 144A with registration rights
Price talk:	7 1/8% area

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