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US Industries likely to refinance or amend bank loans before November
By Sara Rosenberg
New York, May 15 - U.S. Industries Inc. anticipates restructuring or refinancing its restructured credit facilities before their maturity in November 2002, according to a filing with the Securities and Exchange Commission.
Under the restructured debt agreement, the company is required to pay certain debt amortizations. In order to meet these payment obligations, a Disposal Plan was approved, which calls for the sale of Ames True Temper, Selkirk, Lighting Corporation of America, Spear & Jackson and SiTeco Lighting, during 2002, the SEC filing said. So far, the sale of Ames True Temper for about $165 million and the Strategic Notes for about $105.9 million was completed in January and Lighting Corporation of America was sold in April for $250 million. Proceeds from these sales are sufficient to fund the scheduled debt reductions through June 30.
However, the company is required to lower debt by about another $119.4 million on Oct. 15, 2002 and the remaining outstanding balance under the facility is due on Nov. 30. Expectations are that even if the Disposal Plan is carried out in its entirety, proceeds will not fully cover the repayment of debt, which is why a refinancing or restructuring is likely.
At May 1, 2002 the Iselin, N.J. bath and plumbing company had about $556.5 million committed under the restructured facilities, according to the filing. Of the total amount, about $382 million has been used and $174.5 million is available.
As part of the discussions with its bank lenders, the company is also evaluating alternatives for its senior notes and related escrow deposits. No further details were given and the company declined to elaborate.
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