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FAIRFIELD, N.J.-Measurement Specialties Inc. has closed a $9.3 million bridge loan from Castletop Capital L.P., a limited partnership controlled by Mort Topfer, vice chairman of MSI. The loan proceeds were used to refinance the company's existing bank term loan and revolving debt.

The new loan is secured by substantially all of the assets of the company, and matures Jan. 31, 2003. Castletop Capital also received a warrant to purchase up to 2.49 percent of the company's common stock.

"The proceeds of this loan have allowed us to satisfy all of our outstanding obligations under the previous bank credit agreement which, under the forbearance agreement, matured Nov. 1, 2002," Frank Guidone, chief executive officer of MSI, said in a statement. "Once the second quarter is closed, we will resume our efforts to secure a new revolving credit facility and retire the bridge loan."

The company's annual report was released late last month after several delays, included among which was the announcement that the firm would have to restate several quarters of results for 2001. The report stated a net loss of $21 million for the fiscal year ended March 31, 2002.

Net sales for the year rose to $132.6 million, up 30 percent from sales of $102 million for 2001. The consumer products division, which includes the company's food and bath scale businesses, accounted for 57.6 percent of net sales in 2002. Consumer products sales increased 44 percent to $76.4 million, although excluding the Terraillon acquisition, consumer products sales were $48 million, a decrease of nearly 10 percent over 2001 sales. The company sold the Terraillon business in September.

MSI also released its amended 10K quarterly form for the three months ended June 30, 2001, with a loss of $2.5 million for the quarter, a restatement over the previously stated net gain of $1.4 million for quarter. Sales for the quarter were $25.6 million for the restated report, compared with $25.9 million from the original report. MSI said it intends to file a current form 8K to provide restated quarterly financial information for each of the quarters in fiscal 2001 and the first three quarters of fiscal 2002.
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Title Annotation:Measurement Specialties Inc.
Comment:MSI SECURES $9.3M BRIDGE LOAN.(Measurement Specialties Inc. )
Publication:HFN The Weekly Newspaper for the Home Furnishing Network
Geographic Code:1USA
Date:Nov 11, 2002
Previous Article:NEWS BRIEFS.

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