Cherokee to repay 14½% notes with IPO proceeds

New York, Nov. 25 - Cherokee International Corp. said it will repay all $46.7 million of its 14½% second lien notes due Feb. 28, 2006 in conjunction with its initial public offering of common stock.

The company will also use expected proceeds of $73 million from the stock offering - or $83.2 million, if the greenshoe is exercised - to pay accrued interest on the 14½% notes, repay $12.5 million of term loans and $2.7 million of revolving credit facility borrowings outstanding and to repay interest added to the original principal amount of its 12% senior convertible notes due Nov. 1, 2008. As of Nov. 1, there was $6.4 million of interest accrued on the convertibles, which will automatically convert on closing of the IPO.

Any remaining proceeds will be used for general corporate purposes.

Cherokee, a Tustin, Calif., maker of power supplies, filed a registration statement for its IPO with the Securities and Exchange Commission. It named Credit Suisse First Boston and Lehman Brothers as bookrunners.

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