Business News
X-Rite to Pay Off High-Interest Second Lien Indebtedness
Monday 04. October 2010 - X-Rite, Incorporated (NASDAQ:XRIT) today announced that as part of the Companys ongoing efforts to deleverage its balance sheet and to lower the Companys cost of capital, it will pay off in full the remaining principal balance of $26.4 million on its 14.375% Second Lien Indebtedness with cash on hand and borrowings under its revolving credit facility. Net interest savings are expected to be about $2.8 million on an annual basis.
“We are very pleased to report that X-Rites improved operating results have produced the ability to use a combination of cash on hand and revolver borrowing capacity to pay off this high cost debt and also achieve a net reduction in secured debt of approximately $10 million”
“We are very pleased to report that X-Rites improved operating results have produced the ability to use a combination of cash on hand and revolver borrowing capacity to pay off this high cost debt and also achieve a net reduction in secured debt of approximately $10 million,” said Rajesh K. Shah, X-Rites Chief Financial Officer.
Through an amendment to its First Lien Credit facility, the Company will also be able to pay cash dividends on its Mandatorily Redeemable Preferred Stock rather than issuing additional preferred shares to pay the dividend, subject to satisfaction of certain conditions specified in the amendment.