New Issue: Associated Materials $165 million 10-year notes yield 9¾%

By Paul A. Harris

St. Louis, Mo., April 18 - Simon Acquisition Corp., which will be merged into Associated Materials, Inc., priced $165 million of senior subordinated notes due April 15, 2012 (B3/B) on Thursday. They priced at par to yield 9¾%, according to a syndicate source.

Price talk was 10%-10¼%.

Joint bookrunners were Credit Suisse First Boston and UBS Warburg. The co-manager was CIBC World Markets.

Proceeds from the Rule 144A deal will be used to partially fund the buyout by Harvest/AMI Holding, Inc.

The Dallas-based company manufactures and distributes exterior building products, including vinyl siding.

Issuer:	Simon Acquisition Corp. (to be merged with and into Associated Materials, Inc.)
Amount:	$165 million
Maturity:	April 15, 2012
Type:	Senior subordinated notes
Bookrunners:	Credit Suisse First Boston, UBS Warburg
Co-manager:	CIBC World Markets
Coupon:	9¾%
Price:	Par
Yield:	9¾%
Price talk:	10%-10¼%
Spread:	452 basis points over the 4 7/8% Treasury due Feb., 2012
Call features:	Callable on April 15, 2007 at 104.875, 103.250, 101.625, par on April 15, 2010 and thereafter
Equity clawback:	Until April 15, 2005 for up to 35% at 109.75
Settlement date:	April 23, 2002 (T+3)
Payment dates:	April 15 and Oct. 15, commencing Oct. 15, 2002
Ratings:	Moody's: B3
	Standard & Poor's: B
Rule 144A CUSIP:	82876PAA1

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