Rockford buys back $2 million face value of convertibles, 190,000 warrants

By Jennifer Chiou

New York, May 13 - Rockford Corp. announced the repurchase of $2 million face value of its convertible notes as well as 190,000 associated warrants for a total of $1.2 million.

"Based on our recent operating performance, we had the financial availability to accomplish this transaction," chief financial officer Richard G. Vasek said in a news release.

"We are pleased that this repurchase will reduce by $800,000 the cash required to redeem the notes at maturity and also help reduce the effect of possible future dilution of our common stock from a conversion of the notes before maturity or from an exercise of the warrants. This transaction will result in a gain in the second quarter of 2008."

Rockford entered into the original agreements to issue $12.5 million of 4.5% convertible senior subordinated secured notes due June 10, 2009 and warrants on June 10, 2004.

The company added that $7.5 million face amount of notes and 771,573 associated warrants remain outstanding.

Tempe, Ariz.-based Rockford is a designer, marketer and distributor of high-performance audio systems for vehicles.

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