New Issue: Aearo sells $175 million eight-year notes to yield 8¼%

By Paul A. Harris

St. Louis, April 1 - Aearo Corp. sold $175 million of eight-year senior subordinated notes (B3/B-) Thursday at par to yield 8¼%, according to an informed source.

Price talk was 8¼% to 8½%.

Deutsche Bank Securities ran the books on the Rule 144A issue.

Proceeds will be used to help fund the acquisition of Aearo by Bear Stearns Merchant Banking and management.

The issuer is an Indianapolis-based maker of personal protection equipment.

Issuer:	Aearo Corp.
Amount:	$175 million
Maturity:	April 15, 2012
Security description:	Senior subordinated notes
Bookrunner:	Deutsche Bank Securities
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	473 basis points
Call features:	Callable after April 15, 2008 at 104.125, 102.063, par on or after April 15, 2010
Equity clawback:	Until April 15, 2007 for 35% at 108.25
Pricing date:	April 1
Settlement date:	April 6
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	8¼%-8½%

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