Standard Motor Products repays 6.75% convertibles in full at maturity

By Angela McDaniels

Tacoma, Wash., July 15 - Standard Motor Products, Inc. has successfully repaid its 6.75% convertible subordinated debentures due July 15, 2009, according to a company news release.

About $32.1 million principal amount plus accrued interest was paid at maturity.

The payment was financed through the company's existing credit facility.

As previously reported, the company said in January that its board of directors suspended the March 1 quarterly dividend as part of its plan to retire the balance of the convertibles through internal cash flow. The company was also considering other outside financing alternatives.

On July 13, Standard Motor Products said it would apply the proceeds of a recent issue of notes toward the repayment of its convertibles. The company sold $5.4 million principal amount of 15% unsecured subordinated promissory notes due April 15, 2011 on July 10 to some of its directors and executive officers and the trustees of its supplemental executive retirement plan.

Standard Motor Products is an automotive replacement parts manufacturer and distributor based in Long Island City, N.Y.

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