AEP Industries (AEPI)

Interest Rates

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At January 31, 2010, the carrying value of our total debt was $191.5 million of which approximately $162.4 million was fixed rate debt (2013 Notes and the Pennsylvania Industrial Loans). As of January 31, 2010, the estimated fair value of our 2013 Notes was approximately $161.0 million. As of January 31, 2010, the carrying value of our Pennsylvania Industrial Loans was $2.2 million which approximates fair value.

Floating rate debt at January 31, 2010 and October 31, 2009 totaled $29.1 million and $7.5 million, respectively. Based on the floating rate debt outstanding during fiscal 2010 (our Credit Facility), a one-percent increase or decrease in the average interest rate would result in a change to interest of approximately $0.1 million.

Interest Rates

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At October 31, 2009, the carrying value of our total debt was $170.0 million of which approximately $162.5 million was fixed rate debt (2013 Notes and the Pennsylvania Industrial Loans). As of October 31, 2009, the estimated fair value of our 2013 Notes was approximately $155.4 million. As of October 31, 2009, the carrying value of our Pennsylvania Industrial Loans was $2.3 million which approximates fair value.

Floating rate debt at October 31, 2009 and 2008 totaled $7.5 million and $71.3 million, respectively. Based on the floating rate debt outstanding during fiscal 2009 (our Credit Facility), a one-percent increase or decrease in the average interest rate would result in a change to interest of approximately $0.4 million.

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At April 30, 2009, the carrying value of our total debt was $190.2 million of which approximately $162.7 million was fixed rate debt. As of April 30, 2009, the estimated fair value of our fixed rate debt was approximately $111.5 million.

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At January 31, 2009, the carrying value of our total debt was $212.0 million of which approximately $177.7 million was fixed rate debt. As of January 31, 2009, the estimated fair value of our fixed rate debt was approximately $104.2 million.

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At October 31, 2008, the carrying value of our company's total debt was $249.2 million of which approximately $177.8 million was fixed rate debt. As of October 31, 2008, the estimated fair value of our fixed rate debt was approximately $102.6 million.

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Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will
increase as interest rates fall and decrease as interest rates rise. At October 31, 2008, the carrying value of our company's total debt was $249.2 million of which approximately
$177.8 million was fixed rate debt. As of October 31, 2008, the estimated fair value of our fixed rate debt was approximately $102.6 million.

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HREF="#bg41501a_main_toc">Table of Contents

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At

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July 31, 2008, the carrying value of our total debt was $176.2 million, all of which was fixed rate debt. As of July 31, 2008, the estimated fair value of our fixed rate debt was approximately $142.1 million.

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At April 30, 2008, the carrying value of our total debt was $181.3 million of which approximately $176.3 million was fixed rate debt. As of April 30, 2008, the estimated fair value of our fixed rate debt was approximately $169.1 million.

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At January 31, 2008, the carrying value of our total debt was $218.9 million of which approximately $178.8 million was fixed rate debt. As of January 31, 2008, the estimated fair value of our fixed rate debt was approximately $174.5 million.

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At October 31, 2007, the carrying value of our company's total debt was $195.6 million of which approximately $179.0 million was fixed rate debt. As of October 31, 2007, the estimated fair value of our fixed rate debt was approximately $177.3 million.

Interest Rates

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates
fall and decrease as interest rates rise. At October 31, 2007, the carrying value of our company's total debt was $195.6 million of which approximately $179.0 million was fixed
rate debt. As of October 31, 2007, the estimated fair value of our fixed rate debt was approximately $177.3 million.

Interest Rates

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At July 31, 2007, the carrying value of our total debt was $208.9 million of which $179.0 million was fixed rate debt. As of July 31, 2007, the estimated fair value of our fixed rate debt was $175.0 million.

Interest Rates

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At April 30, 2007, the carrying value of our total debt was $182.5 million of which $179.2 million was fixed rate debt. As of April 30, 2007, the estimated fair value of our fixed rate debt was $185.1 million.

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Interest Rates

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At January 31, 2007, the carrying value of our company’s total debt was $187.0 million of which approximately $179.3 million was fixed rate debt. As of January 31, 2007, the estimated fair value of our fixed rate debt was approximately $184.1 million.

Interest Rates

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At October 31, 2006, the carrying value of our company’s total debt was $193.9 million of which approximately $179.4 million was fixed rate debt. As of October 31, 2006, the estimated fair value of our fixed rate debt was approximately $183.8 million.

Interest Rates

We may use interest rate swaps, collars and options to manage our exposure to fluctuations in interest rates. At July 31, 2006, there was one interest rate swap outstanding in connection with the $2.7 million bank debt of our Netherlands subsidiary. We were not a party to any interest rate collars or options for the three and nine months ended July 31, 2006 and July 31, 2005.

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At July 31, 2006, the carrying value of our total debt was $195.3 million of which approximately $179.6 million was fixed rate debt. As of July 31, 2006, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $180.5 million.

Interest Rates

We may use interest rate swaps, collars and options to manage our exposure to fluctuations in interest rates. At April 30, 2006, there was one interest rate swap outstanding in connection with the $2.7 million bank debt of our Netherlands subsidiary. We were not a party to any interest rate collars or options for the three and six months ended April 30, 2006 and April 30, 2005.

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At April 30, 2006, the carrying value of our company’s total debt was $194.5 million of which approximately $179.8 million was fixed rate debt. As of April 30, 2006, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $183.3 million.

We may use interest rate swaps, collars and options to manage our exposure to fluctuations in interest rates. At January 31, 2006, there was one interest rate swap outstanding in connection with the $3.2 million bank debt of our Netherlands subsidiary. We were not a party to any interest rate collars or options for the quarter ended January 31, 2006 and January 31, 2005.

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At January 31, 2006, the carrying value of our company’s total debt was $191.1 million of which approximately $179.9 million was fixed rate debt. As of January 31, 2006, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $174.6 million.

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At October 31, 2005, the carrying value of our company’s total debt was $192.6 million of which approximately $180.0 million was fixed rate debt. As of October 31, 2005, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $171.2 million.

We may use interest rate swaps, collars and options to manage our exposure to fluctuations in interest rates. At April 30, 2005, there was one interest rate swap outstanding in connection with the $3.2 million bank debt of our Netherlands subsidiary. We were not a party to any interest rate collars or options at April 30, 2005.

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At April 30, 2005, the carrying value of our company’s total debt, excluding capitalized debt, was $270.0 million of which approximately $210.5 million was fixed rate debt. As of April 30, 2005, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $209.8 million.

The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At July 31, 2005, the carrying value of our company’s total debt, excluding capitalized debt, was $206.1 million of which approximately $177.3 million was fixed rate debt. As of July 31, 2005, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $177.5 million.

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Interest Rates

        We may use interest rate swaps, collars and options to manage our exposure to fluctuations in interest rates. At April 30, 2005, there was one interest rate swap outstanding in connection with the $3.2 million bank debt of our Netherlands subsidiary. We were not a party to any interest rate collars or options at April 30, 2005.

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At April 30, 2005, the carrying value of our company's total debt, excluding capitalized debt, was $270.0 million of which approximately $210.5 million was fixed rate debt. As of April 30, 2005, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $209.8 million.

Interest Rates

        We may use interest rate swaps, collars and options to manage its exposure to fluctuations in interest rates. At January 31, 2005, there was one interest rate swap outstanding in connection with the $3.2 million bank debt of our Netherlands subsidiary. We were not a party to any interest rate collars or options January 31, 2005.

        The fair value of our fixed interest rate debt varies with changes in interest rates. Generally, the fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. At January 31, 2005, the carrying value of our company's total debt was $281.5 million of which approximately $202.0 million was fixed rate debt. As of January 31, 2005, the estimated fair value of our fixed rate debt, which includes the cost of replacing our fixed rate debt with borrowings at current market rates, was approximately $207.0 million.