New Issue: Apria sells $200 million convertible to yield 3.375%, up 32%

Nashville, Aug. 15 - Apria Healthcare Group Inc. sold $200 million of 30-year convertible notes at par to yield 3.375% with a 32% initial conversion premium - at the middle of revised yield talk and cheap end of revised premium guidance.

The issue was first talked to yield 2.75% to 3.25% with a 35% to 40% initial conversion premium, then sweetened to a 3.0% to 3.5% coupon, up 32% to 35%.

Up to $100 million of proceeds will be used to buyback stock. Remaining proceeds will be used for general corporate purposes, including perhaps additional stock repurchases and acquisitions within the next 12 months.

Terms of the new deal are:

Issuer: Apria Healthcare Group Inc.

Issue:	Convertible senior notes
Lead managers:		Banc of America, JPMorgan and Morgan Stanley
Co-managers:	Lyon, Fleet, Scotia Capital Markets and UBS Investment Bank
Amount	$200 million
Greenshoe:	$50 million
Maturity:	Aug. 15, 2033
Coupon:	3.375%
Price:	Par
Yield:	3.375%
Conversion premium:	32%
Conversion price:	$34.8612
Conversion ratio:	29.6852
Contingent conversion:	130%
Contingent payment:	120%
Call:	Non-callable for 7 years
Put:	In years 5, 7, 10, 15, 20 and 25
Price talk:	Original: 2.75-3.25%, up 35-40%
	Revised: 3.0-3.5%, up 32-35%
Pricing date:	Aug. 14, after the close
Settlement:	Aug. 20
Distribution:	Rule 144A

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