Applied Power announces refinancing.MILWAUKEE--(BUSINESS WIRE)--March 3, 1995--Applied Power Inc. (APW APW All Pro Wrestling APW Altmar Parish Williamstown (School District; Parish, New York) APW Add-Printer Wizard (Microsoft Windows) APW Augmented Plane Wave APW Apparent Polar Wander - NYSE NYSE See: New York Stock Exchange ) announced that it will be refinancing Refinancing An extension and/or increase in amount of existing debt. all $64 million of its 9.92% Senior Unsecured Notes on March 30, 1995. The Senior Unsecured Notes will be replaced by variable rate borrowings which will be accommodated by an expansion of an existing credit facility. "Applied Power's recent and projected cashflow and debt reductions necessitate ne·ces·si·tate tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates 1. To make necessary or unavoidable. 2. To require or compel. the replacement of our unsecured notes, which have fixed redemptions over the next six years. By replacing this debt now, Applied Power will have better flexibility as to repayment and placement of debt around the world," commented Richard G. Sim, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . At current interest rates and debt levels, this change would benefit Applied Power's earnings per share by approximately $0.12 per year. The actual benefits will vary depending on future interest rate movements. The Company will be recording a net extraordinary charge of approximately $5 million in the quarter ending February 28, 1995 as a result of the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of the Senior Unsecured Notes. The extraordinary charge includes a "make whole" payment and the write-off of deferred costs related to the Senior Unsecured Notes. In an unrelated matter, the Company announced that its results for the second quarter of Fiscal 1995, to be announced To be announced (TBA) A contract for the purchase or sale of an MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered. on March 23, will include a foreign exchange loss of approximately $1.3 million, or $0.06 per share, resulting from the recent devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the Mexican peso. Applied Power S.A. de C.V., the Company's Mexican subsidiary, had certain U.S. dollar denominated liabilities which were impacted by the devaluation. Within the last month, Applied Power has restructured the debt of its Mexican subsidiary such that any potential additional Mexican peso devaluation is not expected to have a material impact on earnings. Applied Power is a world leader in industrial motion and position control applications and a pioneer in the marriage of hydraulic and vibration technologies with electronics. The Company is comprised of two business groups and the Wright Line unit. The Engineered Solutions Group, which includes the Power-Packer, APITECH and Barry Controls businesses, serves the automotive, truck, mobile equipment, marine, medical equipment, defense and aerospace markets. The Distributed Products Group, consisting of Enerpac and GB Electrical, provides a wide variety of high pressure hydraulic products and electrical tools and consumables worldwide. The Wright Line business provides technical furniture solutions for offices and laboratories. CONTACT: Applied Power Inc., Milwaukee Robert C. Arzbaecher, 414/781-6600 |
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