American Pacific Corporation Completes Debt Refinancing

American Pacific Corporation

announced today that it completed the refinancing of its senior debt. On October 26, 2012, the Company entered into an $85 million senior secured credit agreement (the "Credit Facility"). Under the Credit Facility, the Company (i) obtained a term loan in the aggregate principal amount of $60 million, with an initial maturity in 5 years, and (ii) may obtain revolving loans of up to $25 million in aggregate principal amount. The Company may prepay and terminate the Credit Facility at any time, without premium or penalty. The initial annual interest rate is expected to be LIBOR plus 225 basis points plus fee amortization and expenses. The Credit Facility is secured by substantially all of the assets of the Company and contains customary and negotiated covenants and events of default. Concurrently, the Company terminated its existing asset based lending credit agreement and redeemed its outstanding 9% senior secured notes with an outstanding principal amount of $65 million. The redemption price for the notes was 102.25% of the outstanding principal amount plus accrued interest. On October 26, 2012, the Company irrevocably deposited funds with the trustee in an amount equal to the redemption price for the notes and the related indenture was discharged. Funds used to redeem the notes included the net proceeds from the Credit Facility term loan and available cash.