BGF Industries purchased 10¼% notes at discount in second and third quarters

New York, Nov. 12 - BGF Industries Inc. (Ca) said that during the second quarter ended June 30 and the third quarter ended Sept. 30, it bought back some of its 10¼% senior subordinated notes due 2009 at a discount to face value.

BGF, a Greensboro, N.C.-based electronics components maker, said in its 10-Q quarterly report to the Securities and Exchange Commission that it repurchased $1.3 million face amount of the notes on June 20 for $800,000, plus $100,000 of accrued interest, which resulted in a gain of $400,000. On Aug. 25, it repurchased $3 million face amount of the notes for $2.2 million plus accrued interest, resulting in a gain of $800,000.

BGF - which issued $100 million of the notes in January 1999 - acknowledged that the notes are currently trading at substantial discounts to their face amount, and said that in order to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption, the company or its affiliates may, from time to time, buy the notes for cash in open-market purchases, privately negotiated transactions or otherwise.

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