Universal Power Group Announces Early Repayment of Notes
On Tuesday December 22, 2009, 11:30 am EST
CARROLLTON, Texas--(BUSINESS WIRE)--Universal Power Group, Inc. (NYSE Amex: UPG), a Texas-based distributor and supplier of batteries and related power accessories, and provider of third-party logistics, today announced that it has negotiated a 7.5 percent principal reduction in exchange for the early repayment of its outstanding 6-percent notes, due June 20, 2012 and has prepaid the remaining $4.0 million in principal less the discount.
The fixed-rate notes were originally issued to Zunicom, Inc., a significant shareholder in UPG, in conjunction with UPG’s initial public offering in 2006. The original principal amount of the notes was $5.85 million, with quarterly principal payments of approximately $365,000 which began in the third quarter of 2008, as stipulated by the payment schedule.
“The early repayment of our Zunicom notes marks another important and positive step in the growth of UPG,” said Ian Edmonds, UPG’s President and Chief Executive Officer. “With the retirement of this debt, we will receive approximately $300,000 in benefit through the negotiated principal discount we were able to secure. Also as a result, we will significantly reduce our annual interest costs and eliminate nearly $1.5 million in principal payments annually.”
About Universal Power Group, Inc.
Universal Power Group, Inc. (NYSE Amex: UPG), is a leading provider of third-party logistics and supply chain management services, and a supplier and distributor of batteries and power accessories. UPG's supply chain services include procurement, warehousing, inventory management, distribution, fulfillment and value-added services such as sourcing, battery pack assembly, coordination of battery recycling efforts, and product design and development. UPG's range of product offerings includes proprietary brands of industrial and consumer batteries of all chemistries, chargers, jump-starters, 12-volt accessories, solar and security products. For more information, please visit the UPG website at www.upgi.com.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission. Historical financial results are not necessarily indicative of future performance.
Contact:
Company Contact:
Universal Power Group, Inc.
Mimi Tan, SVP, 469-892-1122
tanm@upgi.com
or
Investor Relations:
Lambert, Edwards & Associates
Jeff Tryka, 616-233-0500
jtryka@lambert-edwards.com
