Hawk buys back $10 million of its 8¾% senior notes for $9.9 million

By Devika Patel

Knoxville, Tenn., Dec. 1 - Hawk Corp. said it repurchased $10 million of its 8¾% senior notes due Nov. 1, 2014 for $9.9 million.

The company expects to save $100,000 in interest payments in the fourth quarter and $900,000 in interest on an annual basis.

The company's total debt was reduced to $77.1 million from $87.1 million after this repurchase.

"We have repurchased these bonds in furtherance of our strategy to prudently manage our balance sheet by opportunistically buying back debt at attractive rates, while maintaining flexibility to pursue acquisition opportunities, continue our stock buy-back program and support internal capital projects," Hawk chairman and chief executive officer Ronald E. Weinberg said in a press release.

"With this debt repurchase, we expect to save approximately $600,000 after-tax, or $0.07 per diluted share, on an annual basis, in reduced interest costs."

The company said it may seek to retire or purchase additional notes through open market purchases or privately negotiated transactions. These repurchases will depend on prevailing market conditions, the company's liquidity requirements, contractual restrictions and other factors.

Hawk is a Cleveland-based supplier of highly engineered products.

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