True Temper Sports skips March revolver, subordinated notes payments

By Caroline Salls

Pittsburgh, March 17 - True Temper Sports, Inc. did not make the March payments on its revolving bank credit facility and subordinated notes, resulting in non-compliance with its various debt agreements, according to a company news release.

In order to resolve the compliance issue, the company said its management and advisers are in discussions with lenders to develop an appropriate plan and capital structure for the future.

In addition, True Temper said it hired investment banking firm Lazard Middle Market to explore alternatives to enhance its capital structure.

"As we endeavor to restructure our overall debt profile, we maintain our commitment and focus on being a world leader in high performance sporting goods equipment," president and chief executive officer Scott Hennessy said in the release.

"In launching this capital structure review, the company is supported by a strong cash position on its balance sheet, and True Temper customers, suppliers and employees should not be directly impacted, and will ultimately benefit from a much stronger worldwide enterprise."

The company said its preliminary sales results for 2008 show that revenues will exceed $123 million, while profitability for 2008 improved significantly and finished in line with company expectations.

True Temper is a Memphis-based manufacturer of golf shafts and performance sports products.

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