Actuant to see lower interest rate on loan due to improved leverage

By Sara Rosenberg

New York, Oct. 1 - The interest rate on Actuant Corp.'s senior secured credit facility will decline to Libor plus 275 basis points from Libor plus 200 basis points in the first quarter of 2004 due to the company's reduced leverage.

At Aug. 31, leverage was at an all-time low since the company's July 2002 spin-off, reaching 1.9x. Net debt decreased to approximately $165 million due to strong earnings and working capital reductions, according to a news release.

Furthermore, since Aug. 31, the company has borrowed funds under its credit facility to repurchase approximately $15 million of its 13% notes at a premium on the open market.

Actuant is a Milwaukee diversified industrial company with businesses in highly engineered position and motion control systems, and branded tools.

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