New Issue: American Pacific $110 million eight-year senior notes yield 9%

By Paul A. Harris

St. Louis, Jan. 30 - American Pacific Corp. priced a $110 million issue of eight-year senior notes (B2/B) at par to yield 9% on Tuesday, according to an informed source.

There was no official price talk.

Wachovia Securities ran the books for the notes, which were issued via Rule 144A with registration rights and via Regulation S.

The Las Vegas-based specialty chemicals manufacturer will use the proceeds to refinance its existing credit facilities, to fund an earnout in connection with the 2005 purchase of its fine chemicals business and to repay other debt related to that transaction. The remaining proceeds, if any, will be used for general corporate purposes.

Issuer:	American Pacific Corp.
Amount:	$110 million
Maturity:	Feb. 1, 2015
Security description:	Senior notes
Bookrunner:	Wachovia Securities
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	413 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 1, 2011, then callable at 104.50, 102.25, par on and after Feb. 1, 2013
Equity clawback:	Up to 35% at 109.000 prior to February 1, 2010
Change-of-control put:	101%
Trade date:	Jan. 30
Settlement date:	Feb. 6
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A with registration rights/Regulation S

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