BWIP HOLDING INC. ANNOUNCES DEBT REFINANCING
BWIP HOLDING INC. ANNOUNCES DEBT REFINANCING LONG BEACH, Calif., May 5 /PRNewswire/ -- BWIP Holding Inc.
(NASDAQ-NMS: BWIP), the parent company for BW/IP International Inc., has announced that it has notified debenture holders of its intention to redeem $87 million in senior subordinated and subordinated debentures on May 19, 1992.
The debentures include $61 million in face amount of 12.25 percent senior subordinated debentures that mature in 1997 and $26 million in face amount of 12.75 percent subordinated debentures that mature in 1999. In order to effect the refinancing, the company has secured a private placement of $50 million of 7.92 percent senior notes that mature in 1999. Placement of these notes was secured through Citicorp Securities Markets Inc. Additionally, the company has amended its credit agreement to increase its credit line to $100 million, a portion of which will be applied to the redemption. Peter C. Valli, chairman and chief executive officer, said, "Within the last year we have retired $53.1 million in long-term debt with the proceeds of our initial public offering in May 1991, prepaid $14.2 million in junior subordinated notes in February 1992, and are refinancing $87 million in debentures at rates and terms that are more favorable to the company. Although we will incur a one-time prepayment premium in the second quarter of this year, we have significantly reduced our long-term borrowing costs through this refinancing." BWIP Holding Inc., is the parent company of BW/IP International Inc., a worldwide supplier of advanced-technology pump, seal and fluid control equipment and services. The Pump and Seal segment produces highly engineered pumps and pumping equipment, precision mechanical seals, seal systems and accessories. The Fluid Controls segment manufactures aerospace control systems for tactical missiles and aircraft. -0- 5/5/92 /CONTACT: Dan Peoples of Peoples & Co., 213-435-3700, for BWIP Holding/ (BWIP) CO: BWIP Holding Inc.; BW/IP International Inc. ST: California IN: ARO SU:
EH-KJ -- SD005 -- 6720 05/05/92 16:03 EDT
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|Date:||May 5, 1992|
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