Easy Gardener expects to defer trust preferred payments for at least two more years

New York, Oct. 15 - Easy Gardener Products Ltd. said it expects to continue deferring payments on its 9.4% cumulative trust preferred securities for another 24 to 30 months. It began deferring payments in August.

The Waco, Texas, manufacturer of lawn and garden products is barred from making the payments under the terms of its credit facility because it has not achieved the required level of EBITDA, according to an 8-K filing with the Securities and Exchange Commission.

"Aggressive actions" are being taken to reduce operating costs and enhance sales, Easy Gardener added.

It also noted that its EBITDA is highest in the March 31 and June 30 quarters.

These factors along with others, in particular the weather, will determine when interest payments can resume, Easy Gardener said.

Interest on the trust preferreds can be deferred for up to 60 consecutive months.

Easy Gardener also said it received waivers from its senior lenders for its loan covenant defaults in June, July and August 2004.

Easy Gardener has $63.25 million of the trust preferreds outstanding.

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