Aearo to use IPO to repay all 12% notes due 2013, make credit facility payments

By Ted A. Knutson

Washington, Nov. 22 - Aearo Technologies Inc. said it plans to use an unspecified amount of a proposed $230 million maximum initial public offering of common stock to pay down some of its senior credit facility and to repurchase all $54 million in principal of its 12% notes due May 1, 2013.

Prior to Aug. 3, 2006, Aearo may redeem all or any part of the 12% notes at a redemption price of 106% of the principal amount, plus accrued and unpaid interest to the date of redemption, with funds raised in equity offerings.

The existing senior credit facility consists of a $125 million term loan facility maturing April 7, 2011 and a $50 million revolving credit facility maturing April 7, 2010. In addition, the agreement provides for uncommitted incremental term loan facilities of up to $75 million or the equivalent amount in euros.

Bear Stearns Corporate Lending is the syndication agent for the loan package. National City Bank of Indiana and Wells Fargo Bank NA are co-documentation agents, and Deutsche Bank AG, New York Branch is the administration agent.

Bear Stearns & Co. Inc., Banc of America Securities LLC and Deutsche Bank Securities are the joint book-running managers for the IPO. The other underwriters are JPMorgan and Morgan Keegan & Co. Inc.

Indianapolis-based Aearo makes hearing, eye, face, head, respiratory and fall protection devices.

The announcement was made in an S-1 filing with the Securities and Exchange Commission Tuesday.

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