Black & Decker is redeeming 9 1/4 % debentures

November 11, 1995|By Ross Hetrick | Ross Hetrick,SUN STAFF

Black & Decker Corp. announced yesterday that it is redeeming $150 million worth of debentures as part of its effort to reduce debt and interest costs.

The 9.25 percent sinking fund debentures due 2016 will be redeemed Dec. 18 at 102.94 percent of their face value, as required by their terms. They were originally issued in 1986 by the Emhart Corp., which Black & Decker bought in 1989.

The redemption will result in an extraordinary loss in the fourth quarter of about $30 million, with about 80 percent of it noncash. It also will reduce the interest paid by the giant Towson-based power tool and appliance company.

"It's basically saving us the differential between our bank lines of credit and this," said Black & Decker spokeswoman Barbara B. Lucas.

The company will pay for the redemption with internally generated cash and from about $100 million raised through the sale earlier this year of two subsidiaries of Black & Decker's information technology and services division, PRC Inc.

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