Knowles Electronics amends credit facility, pays bond interest

New York, May 15 - Knowles Electronics Holding Inc. said its bank lenders approved an amendment to its credit facility and added that it has paid the interest due on its bonds and expects to file its 10-K annual report early in the week of May 20.

The Itasca, Ill. maker of hearing aid components needed to amend the credit facility after lower-than-expected sales and earnings in the fourth quarter of 2001 and the first quarter of 2002 put it out of compliance with several financial covenants.

The amendment waives the existing non-compliance and relaxes the company's permitted leverage ratio and permitted interest rate coverage ratio, both through the first quarter of 2003.

After approval of the amendment on May 13, Knowles paid the interest on its 13 1/8% senior subordinated notes on May 14. The coupon had been due on April 15.

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