Midas repays another $6 million of term debt, anticipates refinancing in first half of 2004

By Sara Rosenberg

New York, Jan. 7 - Midas Inc. reduced its term loan debt again, this time leaving a balance of $92.4 million at fiscal year-end compared to a balance of $98.5 million in December. Furthermore, the company stated that it expects to refinance its debt at lower interest rates during the first half of this year.

"We have had discussions with potential lenders," a company spokesman told Prospect News regarding the refinancing.

The possible size and timing of the refinancing have not been disclosed being that it is early in the process.

A lead bank has not officially been chosen, but "we would probably work with existing lenders," the spokesman added.

Bank One is the lead bank on the existing facility.

In all, the Itasca, Ill., auto service company repaid $40.1 million of its term loan debt by fiscal year-end. Initially the two term loans totaled $132.5 million when obtained in March 2003.

The company's revolving credit facility, which had voluntarily been reduced to $25 million from $40 million in December, is undrawn.

"Midas begins 2004 in a much improved financial position as a result of exiting the unprofitable distribution business and significantly reducing our inventories and debt levels," said Alan D. Feldman, president and chief executive officer, in a company news release.

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