DURA Automotive Systems Inc. revealed it intends to borrow $50 million to help pay for its purchase of RV and conversion vehicle industry supplier firm Creation Group, which DURA acquired in July for $57 million.
The $50 million in debt will be sold as notes to institutional buyers and will have an 85/8% annual interest rate, due in 2012.
The terms for the $50 million in notes will be the same as the terms for DURA’s existing $350 million in senior notes, which also carry 85/8% rates and are due in 2012.
DURA acquired Elkhart, Ind.-based Creation from British firm Heywood Williams PLC and DURA is combining Creation with its other RV industry supplier operation, Atwood Mobile Products.
Creation had $145 million in sales in 2002 and its earnings before interest, taxes depreciation and amortization (EBITDA) totaled $12 million last year, according to DURA.