Rockford amends, buys back some 4.5% convertibles, 237,500 warrants

By Devika Patel

Knoxville, Tenn., April 15 - Rockford Corp. amended its 4.5% convertible senior subordinated secured notes as well as the associated warrants, according to an 8-K filed Wednesday with the Securities and Exchange Commission. It also said it repurchased $2.5 million of the notes and 237,500 of the warrants in January for a $500,000 gain.

The notes had a maturity date of June 10, 2009.

In April, Rockford agreed with the holder of the remaining $5 million of notes to amend certain terms.

The notes will now be repaid in four equal payments of $1.25 million on June 10, Dec. 10, June 10, 2010 and Dec. 10, 2010.

On June 10, the interest rate on the unpaid balance will increase to 10%, the outstanding warrants will expire and the conversion option will expire.

"We believe the repurchase and amendment of the notes, along with the availability under our existing asset-based credit facility, should provide us with adequate liquidity to operate the business and continue to pursue opportunities in the marketplace," chief financial officer Richard G. Vasek said in a news release.

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

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