New Issue: AEP Industries sells $200 million eight-year notes at par to yield 8¼%

By Paul A. Harris

Portland, Ore., April 7 - AEP Industries Inc. priced a $200 million issue of eight-year senior notes (B2/B-/) at par to yield 8¼% on Thursday, according to an informed source.

The yield printed at the tight end of the 8¼% to 8½% price talk.

Merrill Lynch ran the books.

The South Hackensack, N.J., plastic packaging manufacturer plans to use the proceeds to fund the tender offer for its 7 7/8% notes due 2013 and to repay all amounts outstanding under its credit facility.

Issuer:	AEP Industries Inc.
Amount:	$200 million
Maturity:	April 15, 2019
Securities:	Senior notes
Bookrunner:	Merrill Lynch
Co-manager:	Wells Fargo Securities LLC
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	507 bps
Cal features:	Make-whole call at Treasuries plus 50 bps until April 15, 2014, then callable 106.188, 104.125, 102.063, par on and after April 15, 2017
Equity clawback:	35% at 108.25 until April 15, 2014
Change-of-control put:	101%
Trade date:	April 7
Settlement date:	April 18
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	8¼% to 8½%
Marketing:	Roadshow

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