By Paul A. Harris
St. Louis, March 10 - AEP Industries Inc. priced $175 million of eight-year senior unsecured notes (B2/B) at par to yield 7 7/8%, according to market sources.
Price talk was 7¾% to 8%.
Merrill Lynch & Co. ran the books for the Rule 144A/Regulation S offering. Deutsche Bank Securities was the co-manager.
Proceeds, along with borrowings from the company's revolver, will be used to repurchase $200 million of its 9 7/8% senior subordinated notes due 2007.
AEP Industries is a South Hackensack, N.J.-based manufacturer, marketer and distributor of plastic packaging products for the food and beverage markets as well as the industrial and agricultural markets.
| Issuer: | AEP Industries Inc.
|
| Amount: | $175 million
|
| Maturity: | March 15, 2013
|
| Security description: | Senior unsecured notes
|
| Bookrunner: | Merrill Lynch & Co.
|
| Co-manager: | Deutsche Bank Securities
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 348 basis points
|
| Call features: | Callable after March 15, 2009 at 103.938, 101.969, par on and after March 15, 2011
|
| Trade date: | March 10
|
| Settlement date: | March 18
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Price talk: | 7¾%-8%
|
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