VWR Funding to pay cash for upcoming July interest on its PIK notes

By Susanna Moon

Chicago, March 15 - VWR Funding, Inc. must pay interest on its senior notes in cash for the interest period ending on July 15 because it elected not to pay holders in kind, according to a 10-K filing with the Securities and Exchange Commission.

The company said that on June 25, 2009 and Sept. 21, it made elections to capitalize $5.3 million and €1.9 million of cash interest payable on its senior subordinated notes for the June 30, 2009 and Sept. 30 interest payment dates.

The company paid cash interest on the senior subordinated notes for the Dec. 31 payment date.

VWR noted that it may elect to make non-cash payment-in-kind interest elections for some of its notes.

The company said on June 25, 2009 that it elected to use the payment-in-kind feature of its $675 million of 10¼%/11¼% senior PIK toggle notes due 2015. It was permitted to use the feature in lieu of making a cash interest payment for the semiannual interest period beginning July 15.

VWR noted that for any subsequent interest periods through July 15, 2011, it may make an election to pay interest entirely through PIK interest, or 50% in cash and 50% in PIK interest.

The company made a permitted election to capitalize $2,650,012.50 and €937,500 of cash interest payable on its $353,335,000 of 10¾% senior subordinated notes and €125 million of 10¾% senior subordinated notes due 2017, respectively, for the quarterly interest payment date ending on June 30.

Through and including March 31, VWR added that it may make an election to capitalize up to 28% per year of interest by capitalizing the interest and adding it to the then outstanding principal amount of the 10¾% notes.

The company had said that electing the PIK feature and capitalizing interest on the senior subordinated notes is an efficient and cost-effective method to enhance its liquidity and fund acquisition and investment opportunities.

VWR is a West Chester, Pa., provider of laboratory equipment to the pharmaceutical, biotechnology, chemical and other industries.

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