New Issue: Erico International upsized $141 million eight-year notes yield 8 7/8%

By Paul A. Harris

St. Louis, Feb. 12 - Erico International Corp. priced an upsized $141 million of eight-year senior subordinated notes (B3/B-) Thursday at par to yield 8 7/8%, market sources said.

Price talk was in the area of 8¾%.

Deutsche Bank Securities and JP Morgan were underwriters of the Rule 144A issue, which has registration rights.

Proceeds will be used to refinance debt.

The Solon, Ohio-based company manufactures engineered metal products for niche applications.

Issuer:	Erico International Corp.
Amount:	$141 million (increased from $135 million)
Maturity:	March 1, 2012
Security description:	Senior subordinated notes
Underwriters:	Deutsche Bank Securities, JP Morgan
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Spread:	521 basis points
Call features:	Callable after March 1, 2008 at 104.438, 102.219, par on March 1, 2010 and thereafter
Equity clawback:	Until March 1, 2007 for 35% at 108.875
Pricing date:	Feb. 12
Settlement date:	Feb. 20
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	8¾% area

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