AEP completes private placement offering of US$200M aggregate principal amount of 8 1/4% senior notes due 2019, uses portion of proceeds to buy existing 7.875% senior notes due 2013
SOUTH HACKENSACK, New Jersey
April 18, 2011
– AEP Industries Inc. (Nasdaq:AEPI - News) announced today that it consummated its private placement offering of $200 million aggregate principal amount of 8 1/4% Senior Notes due 2019 (the "New Notes").
The New Notes yielded net proceeds of approximately $195.4 million, after deducting the initial purchasers' commissions and expenses payable by the Company. A portion of the proceeds from the offering of the New Notes were used to purchase the Company's existing 7.875% Senior Notes due 2013 (the "Existing Notes") that were validly tendered and not withdrawn as of the early tender deadline pursuant to its previously disclosed tender offer and consent solicitation, to pay the related fees and expenses, and to repay a portion of the amounts outstanding under its credit facility. The Company intends to use the remaining proceeds from the offering to purchase the Existing Notes that are tendered after the early tender deadline, but on or prior to the expiration date, and, to the extent necessary, to redeem any Existing Notes that remain outstanding upon completion of the tender offer and consent solicitation.
The New Notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the New Notes, nor shall there be any sale of New Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the consumer, industrial and agricultural markets. The Company has manufacturing operations in the United States and Canada.