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AMERICAN PACIFIC CLOSES $40,000,000 FINANCING FOR SODIUM AZIDE FACILITY

AMERICAN PACIFIC CLOSES $40,000,000 FINANCING FOR SODIUM AZIDE FACILITY
 LAS VEGAS, Feb. 20 /PRNewswire/ -- American Pacific Corp. (the company) (NASDAQ: APFC) has closed its $40 million financing to support the design, engineering, construction and start-up of a sodium azide manufacturing facility to serve the automotive airbag market.
 The company sold $40 million principal amount of 11 percent subordinated notes due 2001 to the Pennsylvania Public School Employes' Retirement System ("PSERS") and Fidelity Investments Inc. It is anticipated that funding will occur on Friday, Feb. 21. The sale includes the issuance of warrants to purchase the company's common stock.
 The plant, which will be constructed in Iron County, Utah, will have a capacity of 2,000 metric tons-per-year of sodium azide, the principal chemical used to inflate automotive airbag safety systems. The plant is on a 34-acre site and will include nine buildings totaling approximately 40,000 square feet. The company holds an exclusive North American license for Dynamit Nobel AG of Germany's most advanced sodium azide production technology and know-how. Dynamit Nobel has successfully produced sodium azide in Europe for over 80 years. There is no other U.S. producer of sodium azide.
 Fred D. Gibson Jr., chairman, president and chief executive officer, said: "We are pleased to close this previously announced transaction. Formal groundbreaking occurred in December 1991, and it is expected that intensive site construction will begin in March. Process engineering has been completed, and civil, structural and other detailed engineering work is now being performed that will support early and fast track construction. Long lead-time equipment has been ordered, and permits are pending. Initial production of sodium azide for qualification and testing purposes is expected to occur this summer. It is anticipated that the plant will be mechanically complete and capable of full production at the 2,000 metric ton level in late 1992."
 American Pacific's principal business activity consists of the production of ammonium perchlorate, the oxidizer utilized in composite solid rocket propellants employed in a large number of space and military systems. Through direct and indirect subsidiaries, the company is engaged in the manufacture of perchlorate chemicals, design and manufacture of electrolytic systems and electrodes, the design and manufacture of pollution control systems, and industrial real estate development.
 As described above, the company will engage in the manufacture of sodium azide. The company is also studying the manufacture of Halotron, a fire extinguishing system and agent expected to replace ozone- depleting halons.
 -0- 2/20/92
 /CONTACT: C. Keith Rooker, executive VP of American Pacific Corp., 702-735-2200/
 (APFC) CO: American Pacific Corp. ST: Nevada IN: CHM SU:


DM-CH -- LA020 -- 1024 02/20/92 14:48 EST
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Publication:PR Newswire
Date:Feb 20, 1992
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