TriMas Corp., parent to Cequent Performance Products, will pay down $50 million of long-term principal on senior secured debt notes due in 2017, the company reported in a recent notice to Bank of New York Mellon Trust Co. NA, trustee of the notes.
Crain’s Detroit Business reported that the Bloomfield Hills, Mich.-based manufacturer of engineered and applied products in the energy, aerospace, recreational vehicle and other industries gave that notice under an optional redemption provision of a 2009 indenture governing notes at 9.75% interest.
TriMas expects about $200 million of debt principal will remain outstanding after the redemption. The redemption price will include the principal and interest rate, plus all accrued and unpaid interest as of next month. After the redemption, the company expects to have about $200 million in debt principal remaining on those notes.
On May 2, the company raised $83 million, minus some fees, from an offering of 4 million new shares of stock for “general corporate purposes,” which could include repayment of long-term debt or company acquisitions, according to a recent U.S. Securities and Exchange Commission report. It was unclear whether any funds from that offering were put toward payment on the debt notes.