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While geopolitical and economic uncertainties remain, we expect
to continue our momentum from 2002. In the first quarter, we
refinanced $600 million of our outstanding debt, enhancing our
profitability by providing an estimated $12 million to $14 million
in pretax savings for 2003. Proceeds of a new $575 million bank
facility and $200 million of an 8 1/8 percent senior subordinated
notes offering were used to refinance our 9 percent notes. The
timing of the refinancing could not have been better. The new
notes were issued at a premium – the resulting 7.4 percent
yield on our new subordinated debt was the lowest for a company
with a double-B credit rating in more than a decade.
Our financing flexibility supports our strategy of growth through
acquisition. It also allows us to pay down debt when attractive
acquisition opportunities are unavailable. |
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