New Issue: Appleton $250 million seven-year notes yield 12½%

By Paul A. Harris

St. Louis, Mo., Dec. 11 - Appleton Papers, Inc. priced $250 million of seven-year senior subordinated notes late Tuesday at 12½%, much higher than talk of 10 7/8% to 11 1/8%, according to syndicate sources.

"It came in well wide of talk," one syndicate source commented.

The Rule 144A deal (B3/B+) was priced at par.

Bear Stearns & Co. ran the books on the deal. The syndicate also included TD Securities, ABN Amro and USBancorp.

Issuer:	Appleton Papers Inc.
Amount:	$250 million
Maturity:	Dec. 15, 2008
Type:	Senior subordinated notes
Bookrunner:	Bear Stearns
Co-managers:	TD Securities, ABN Amro, USBancorp
Coupon:	12½%
Price:	Par
Yield:	12½%
Spread:	766 basis points over 4.75% Treasury of Nov., 2008
Call features:	Callable on Dec. 15, 2005 at 106.25, then at 103.125,
	declining to par on Dec. 15, 2007
Equity clawback:	Until Dec. 15, 2004 for 35% at 112.50
Ratings:	Moody's: B3
	Standard & Poor's: B+
End

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