Acco Brands to prepay $25 million of term debt

By Sara Rosenberg

New York, March 27 - Acco Brands Corp. will prepay $25 million of senior secured term loan debt before the end of the month, according to a company news release.

After making this payment, the company will have reduced the principal amount outstanding under its senior secured credit facility by $55 million from the $600 million outstanding at the time it was completed.

"Our ability to prepay additional debt is a reflection of our strong cash position," said Neal V. Fenwick, executive vice president and chief financial officer, in the release.

"We began 2006 with more than $90 million in cash, allowing us to prepay $24 million of debt in January and an additional $25 million this month. We now have greater visibility on the timing of cash restructuring and integration charges relating to the former ACCO World and General Binding Corp. office products businesses, and we are confident that our cash position will remain robust throughout 2006."

Acco is a Lincolnshire, Ill.-based branded office products company.

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