Printer Friendly

KERR REFINANCES SUBORDINATED NOTES

 LOS ANGELES, Sept. 21 /PRNewswire/ -- Kerr Group Inc. (NYSE: KGM) today announced that it has sold $50,000,000 principal amount of senior notes to a group of insurance companies consisting of John Hancock Mutual Life Insurance Co., New York Life Insurance Co. and Massachusetts Mutual Life Insurance Co. The senior notes consist of $41,000,000 of 10-year notes with an interest rate of 9.45 percent and $9,000,000 of 6-year notes with an interest rate of 8.99 percent. Sinking fund payments begin under the 10-year notes in 1998 and under the 6-year notes in 1997. The senior notes are unsecured.
 The proceeds from the sale of the senior notes will be used to redeem all of the $40,000,000 principal amount of 13 percent Subordinated Notes of Kerr Group Inc. on Dec. 15, 1993, when they become redeemable at par. The remaining proceeds will be used for working capital. The company has terminated its presently unused $25,000,000 secured bank revolving credit agreement.
 The company expects that the refinancing will result in annual pre- tax savings from lower net interest expense and lower bank and other financing fees of approximately $1,200,000 ($734,000 after-tax, or $0.20 per common share, primary and fully diluted).
 The company will record a reserve for the extraordinary loss on the refinancing of the 13 percent Subordinated Notes and termination of the revolving credit facility of $1,300,000 after-tax, or $0.35 per common share, primary and fully diluted, in the third quarter of 1993. The extraordinary loss will include interest expense on the 13 percent Subordinated Notes from Sept. 21, 1993, through Dec. 15, 1993, and the write-off of unamortized debt fees and related costs.
 Kerr, headquartered in Los Angeles, is a major producer of plastic packaging products and home canning supplies.
 -0- 9/21/93
 /CONTACT: D. Gordon Strickland, Senior VP, CFO, 310-284-2585/
 (KGM)


CO: Kerr Group ST: California IN: SU:

LM-JB -- LA028 -- 4312 09/21/93 15:49 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 21, 1993
Words:337
Previous Article:DAVIDSON & ASSOCIATES INC. AND MCDOUGAL, LITTELL & COMPANY ANNOUNCE STRATEGIC ALLIANCE TO COMBINE SOFTWARE AND TEXTBOOKS
Next Article:ASSET INVESTORS SETS RECORD DATE FOR SPIN-OFF OF COMMERCIAL ASSETS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters