New Issue: Associated Materials prices $200 million 9 7/8% seven-year notes to yield 10 1/8%

By Paul A. Harris

St. Louis, Oct. 29 - Associated Materials, LLC priced a $200 million issue of 9 7/8% seven-year senior secured second-lien notes (B2/CCC/) at 98.875 to yield 10 1/8% on Thursday, according to market sources.

The yield printed in the middle of the 10% to 10¼% price talk.

J.P. Morgan Securities Inc., UBS Investment Bank and Wells Fargo Securities are joint bookrunners.

Proceeds will be used to redeem the company's senior subordinated notes (B3/CCC).

The Dallas-based building materials company also decreased the call protection to three years from four years.

Issuer:	Associated Materials, LLC
Face amount:	$200 million
Proceeds:	$197,514,000
Maturity:	Nov. 15, 2016 (springs to Dec. 1, 2013 if, as of Oct. 15, 2013, any of Associated Materials Holding Co. 11¼% notes remain outstanding, unless discharged or defeased, or if any debt is incurred to refinance the AMH 11¼% notes prior to Nov. 15, 2016)
Securities:	Senior secured second-lien notes
Bookrunners:	J.P. Morgan Securities Inc., UBS Investment Bank, Wells Fargo Securities
Coupon:	9 7/8%
Price:	98.875
Yield:	10 1/8%
Spread:	714 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2012, then callable at 107.406, 104.938, 102.469, par on and after Nov. 15, 2015 (call protection decreased to three years from four years)
Equity clawback:	35% at 109.875 until Nov. 15, 2012
Change-of-control put:	101%
Trade date:	Oct. 29
Settlement date:	Nov. 5
Ratings:	Moody's: B2
	Standard & Poor's: CCC
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	10% to 10¼%

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