Actuant repurchases additional 13% notes

New York, Nov. 21 - Actuant Corp. (B2) said that it has repurchased an additional $34 million principal amount of its 13% senior subordinated notes due 2009 at a premium on the open market.

Actuant, a Milwaukee-based diversified manufacturer of highly engineered position and motion control systems and branded tools, said the latest repurchase brings the total of 13% notes repurchased since its fiscal year ended on Aug. 31 to $49 million and leaves about $61 million still outstanding. The company originally sold $200 million of the bonds in July 2000.

It funded the latest repurchases using a portion of the proceeds from its issuance earlier in the month of $150 million of 2% senior subordinated convertible debentures due 2023.

Actuant said that the recent repurchases of the 13% notes, combined with previously announced $15 million principal amount of repurchases since the beginning of fiscal 2004 on Sept. 1, will result in a net-of-tax charge of about $9.8 million (around 40 cents per diluted share) in the first quarter of fiscal 2004, representing the combination of premiums paid above principal value for the notes, transaction expenses, and the non-cash write-off of a portion of capitalized debt issuance costs.

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