New Issue: Acetex prices $75 million add-on at 109.5 to yield 8.19%

By Paul A. Harris

St. Louis, July 25 - Acetex Corp. priced a $75 million add-on to its 10 7/8% senior notes due Aug. 1 2009 (B2/B+) at 109.5 on Friday to yield 8.19%, according to an informed source.

Price talk was 109-109.5.

UBS Investment Bank was bookrunner on the Rule 144A deal. JP Morgan was co-manager.

Proceeds together with existing cash will be used to repay the outstanding debt of AT Plastics Inc.

The issuer is a Vancouver, B.C.-based chemical company.

Issuer:	Acetex Corp.
Amount:	$75 million
Security description:	Add-on to 10 7/8% senior notes due 2009
Bookrunner:	UBS Investment Bank
Co-manager:	JP Morgan
Maturity:	Aug. 1, 2009
Coupon:	10 7/8%
Price:	109.5
Yield to worst:	8.19%
Yield to maturity:	8.8%
Spread:	625 basis points
Call features:	Callable on Aug. 1, 2005 at 105.438, then 103.625, 101.813, declining to par on Aug. 2, 2008 and thereafter
Equity clawback:	Until Aug. 1, 2004 for 35% at 110.875
Settlement date:	Aug. 5, 2003 (T+7) with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's B+
Rule 144A Cusip:	003910AG1
Price talk:	109-109.5

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