New Issue: Airgas sells $150 million 10-year notes to yield 6¼%

By Paul A. Harris

St. Louis, March 3 - Airgas Inc. sold $150 million of 10-year senior subordinated notes (Ba2/B+) Wednesday at par to yield 6¼%, a syndicate source said.

Price talk was 6¼% to 6½%.

Banc of America Securities and Goldman Sachs & Co. ran the books on the Rule 144A/Regulation S issue. The joint lead managers were Bank of New York and JP Morgan. The co-managers were PNC, Tokyo Mitsubishi, NatCity Investments, Wachovia Securities and Merrill Lynch & Co.

Proceeds will be used to redeem $75 million of the company's 7.14% medium term notes due this month and pay down its revolver.

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

Issuer:	Airgas Inc.
Amount:	$150 million
Maturity:	July 15, 2014
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities, Goldman Sachs
Joint lead managers:	Bank of New York, JP Morgan
Co-managers:	PNC, Tokyo Mitsubishi, NatCity Investments, Wachovia Securities, Merrill Lynch
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Spread:	216 basis points
Call features:	Callable after July 15, 2009 at 103.125, 102.833, 101.042, par on July 15, 2012 and thereafter
Equity clawback:	Until July 15, 2007 for 35% at 106.25
Pricing date:	March 3
Settlement date:	March 8
Ratings:	Moody's: Ba2
	Standard & Poor's: B+
Price talk:	6¼%-6½%

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