OM Group says deleveraging balance sheet will build company's future

By Lisa Kerner

Charlotte, N.C., March 5 - OM Group, Inc.'s efforts to cut its debt will allow it to use future cash to make acquisitions, chief financial officer Kenneth Haber said during the company's earnings conference call Monday.

"Given the short payback period, the high interest rate of the notes and the current credit environment, deleveraging the balance sheet at this time was the right thing to do," Haber said.

"Our current cash position combined with anticipated future cash flows and a debt-free cash balance sheet provides the company with a strong foundation to execute its acquisition strategy."

On March 7, as previously announced, OM Group will redeem all of its outstanding $400 million principal amount of 9¼% senior subordinated notes due in 2011 at 104.625% of the principal amount plus accrued interest.

OM Group's total debt for the year ending Dec. 31, 3006 was $404.3 million.

"Our goal is to ensure more predictable and sustainable financial results over the long term," chief executive officer and president Joseph Scaminace added.

OM Group is a Cleveland-based chemical producer.

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