NS Group calls remaining 13½% '03 notes

New York, May 20 - NS Group Inc. (Ba3/B+) said that it has instructed Huntington National Bank, the trustee for its 13½% senior secured notes scheduled to come due on July 15, to make an early redemption call for the remaining $16.8 million of the notes.

The company said the notes would be redeemed at a price of par plus accrued interest on or about June 23.

NS Group also announced that it has amended its revolving credit facility agreement to provide for increased financial flexibility. Availability reserves associated with the facility are being modified to increase the company's borrowing ability by $15 million. The amendment also gives the credit facility lender a security interest in substantially all of the company's property, plant and equipment. Additionally, it reduces the overall size of the facility by $5 million to $45 million and adds a financial covenant.

The credit facility amendment becomes effective upon satisfaction of certain conditions, including redemption of the 13½% notes.

As previously announced, the Newport, Ky.-based producer of seamless and welded tubular products for the energy industry had brought the amount of outstanding 13½% notes down to current levels in several stages.

The company had originally issued $73 million of the notes in July, 1995; that amount had been reduced to $68.8 million by June, 13 2002, when NS called $35 million of the notes for redemption at par plus accrued interest on July 15, 2002. The company said in its 2002 second quarter 10-Q quarterly filing with the Securities and Exchange Commission on Nov. 12, 2002 that that it had redeemed the $35 million of notes as scheduled on July 15, bringing the remaining outstanding amount down to $33.8 million.

On April 2, NS said that it would redeem $17 million of the notes at par plus accrued interest on May 5, using funds from existing liquidity sources, including cash and the company's credit facility. In its 2003 first quarter 10-Q filing with the SEC on May 12, NS said that that this transaction had been completed as scheduled, bringing the amount of notes still outstanding down to the current $16.8 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.