AEP Industries talks $200 million eight-year notes with 8¼%-8½% yield

By Paul A. Harris

Portland, Ore., April 6 - AEP Industries Inc. talked its $200 million offering of eight-year senior notes (B2/B-) with an 8¼% to 8½% yield on Wednesday, according to an informed source.

The books close at noon ET on Thursday, and the deal is set to price thereafter.

Merrill Lynch is the bookrunner for the Rule 144A with registration rights offering. Wells Fargo Securities LLC is the co-manager.

The notes become callable in three years at par plus 75% of the coupon. The notes feature a 101% poison put.

The South Hackensack, N.J., plastic packaging manufacturer plans to use the proceeds to fund the tender offer for its 7 7/8% notes due 2013 and to repay all amounts outstanding under its credit facility.

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