Thermadyne sees lower borrowing costs as special interest on notes declines

New York, Aug. 4 - Thermadyne Holdings Corp. said its borrowing costs declined in the second quarter, in part because the special interest adjustment on its $175 million of senior subordinated notes declined 50 basis points to 0.75% effective April.

There will be an additional 50 bps reduction to 0.25% on Oct. 1 as a result of a further reduction in the company's leverage ratio as of June 30, the St. Louis-based maker of cutting and welding products said.

Interest costs for the second quarter were $5.3 million, down $2.0 million from a year earlier.

Average debt was 10% less and Thermadyne also benefited from lower Libor rates and reduced interest rate grids on its working capital and second lien facilities from an amendment in June 2007.

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