Reader's Digest pays down $85 million of debt, plans $150 million reduction in 2004

New York, July 30 - Reader's Digest Association, Inc. said it reduced its debt by $85 million during fiscal 2003 and set a $150 million debt-reduction target for fiscal 2004.

"Our vigorous cash flow enables us to continue to pay down debt well ahead of our required payments," said Thomas Ryder, Reader's Digest's chairman and chief executive officer, during a conference call.

Looking ahead, he added: "Cash flow should continue very strong and exceed fiscal 2003 levels.

"We will use the cash to continue to pay down debt well ahead of our requirements. We envision no major use of cash until our debt is substantially reduced."

For fiscal 2004, Ryder set a target for free cash flow of at least $162 million and year-end net debt of less than $700 million. Free cash flow for fiscal 2003 was $162 million and debt outstanding at the end of the year was $866 million, with cash on hand at $51 million.

The $85 million reduction in fiscal 2003 was more than double the required payment of $32 million, the company noted.

The Pleasantville, N.Y. publisher is also required to repay $32 million of its term loan during fiscal 2004, chief financial officer Michael Geltzeiler said during the conference call.

SCP Pool pays down $61.5 million of revolver debt

New York, July 30 - SCP Pool Corp. said it repaid $61.5 million of revolving credit facility borrowings during the six months ending June 30.

The total was up from net payments of $9.5 million made during the three months to March 30.

The Covington, La. company also said it made a $2.1 million payment on a line of credit acquired as part of its acquisition of Quebec swimming pool company Les Industries R.P. Inc.

At June 30, SCP Pool had $63.6 million outstanding on its revolver and $86.4 million available, subject to a borrowing base.

Interest on the revolver is at Libor plus 112.5 to 175 basis points depending on the company's leverage ratio.

Manitowoc still plans to pay down $60 million of debt

New York, July 30 - Manitowoc Co., Inc. said it still aims to pay down $60 million of debt this year and generate $100 million in cash flow.

"We are managing the business for cash flow generation and debt reduction," said Tim Wood, Manitowoc's chief financial officer, in a conference call.

"We expect to meet our target of cash flow generation of $100 million once again this year and are confident we can achieve $60 million in debt reduction this year."

Vishay to repay $130 million bank debt from convertible offering

New York, July 30 - Vishay Intertechnology, Inc. said it plans to use up to $130 million of the proceeds from an offering of $450 million convertible subordinated notes due 2023 to pay down its revolving credit facility.

The Malvern, Pa. electronic components manufacturer will use $176 million of the proceeds to fund the redemption of one of its subsidiaries' convertible notes and the remainder for general corporate purposes including the retirement of existing debt.

Jones Lang LaSalle pays down $45 million bank borrowings

New York, July 30 - Jones Lang LaSalle Inc. said it reduced its bank borrowings by more than $45 million from a year earlier.

The Chicago and London-based real estate services and investment management firm said the reduction is the result of continued strong business cash flows, aggressive receivables management and reduced capital expenditures.

As of June 30, it had $43.5 million of borrowings on the credit facilities.

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