Headwaters repays $15 million of senior debt

By Sara Rosenberg

New York, June 16 - Headwaters Inc. repaid $15 million of its senior debt during quarter ending in June.

With this latest repayment, the company has reduced the amount of senior debt incurred in connection with the acquisition of Industrial Services Group to $125 million from the original balance at Sept. 19, 2002 of $155 million.

Using EBITDA for the 12 months to March 31 and the current debt balance of $144.8 million, the company's ratio of debt to EBITDA is 1.72, down from 2.43 on Sept. 30, 2002. The company's de-leveraging goal for the year was to bring the ration down to 1.8.

"We are pleased with the cash flow currently being generated by the company. The company's performance during the first eight months of fiscal 2003 year is in line with management's expectations," said Steven G. Stewart, chief financial officer, in a news release. "We believe the quarter ending June 30, 2003 will be consistent with this level of performance and should be a record quarter for Headwaters."

Draper, Utah - based Headwaters develops and deploys energy-related technologies.

Knowles Electronics to prepay term loan B with proceeds from asset sale

New York, June 16 - Knowles Electronics Holdings Inc. plans to use the $42 million proceeds from the sale of its Automotive Components Group to prepay outstanding term B loans under the credit agreement.

In order to complete the asset sale, the company had to obtain approval from its lenders, which was granted provided that $10 million of principal repayment out of the net proceeds from the transaction would be applied to the subsequent scheduled repayments, and any payments in respect of excess cash flow, of term B borrowings and the remaining net proceeds would reduce the remaining scheduled term B repayments ratably, according to a filing with the Securities and Exchange Commission.

Knowles Electronics is an Itasca, Ill. transducer and acoustic component manufacturer.

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