Flowserve repays $36 million of debt in third quarter

By Sara Rosenberg

New York, Oct. 21 - Flowserve Corp. opted to repay $36 million of debt during the third quarter, bringing total debt repayments in 2003 to $121 million.

"That we again prepaid a substantial amount of debt, despite the heavy cash requirements in the quarter, illustrates Flowserve's cash generating capability," said C. Scott Greer, chairman, president and chief executive officer, in a news release. "We continue to target about $150 million of debt reduction in 2003."

With these debt repayments, the net debt-to-capital ratio improved to 53.9% at the end of the third quarter of 2003 compared with 60.5% at the end of the same period last year and also improved sequentially.

As of Sept. 30 total debt was $982.3 million comprised of $223.4 million term loan A debt, $492.5 million term loan C debt, $4 million revolver debt, $261.8 million senior subordinated notes, and $600,000 of capital lease obligations and other debt. There is currently about $250 million available under the company's revolver, company officials noted in the earnings conference call on Tuesday.

In comparison, at Dec. 31, 2002 total debt was $1.0944 billion, consisting of $259.3 million term loan A debt, $580.5 million term loan C debt, $254 million senior subordinated notes, and $600,000 capital lease obligation and other debt.

Flowserve is an Irving, Tex. developer and manufacturer of precision-engineered flow control equipment for critical service applications.

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