aaiPharma to sell $175 million eight-year notes via Banc of America Securities

By Paul A. Harris

St. Louis, Mo., March 8 - aaiPharma, Inc. will start the roadshow for an offering of $175 million senior subordinated notes due 2010 during the week March 18, a syndicate source told Prospect News. Banc of America Securities is sole bookrunner.

The deal, according to the syndicate source, is expected to price on March 27.

Proceeds from the Rule 144A notes will be used to fund the acquisition of two pharmaceutical pain relief products from Eli Lilly.

"aaiPharma is a specialty pharmaceutical company that buys branded, high-margin products that have been abandoned," the source said. "They are acquiring Darvon and Darvocet from Eli Lilly."

The source added that aaiPharma is concurrently doing a $175 million senior secured credit facility, with Banc of America Securities as lead manager.

The new eight-year senior subordinated notes are non-callable for four years.

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