Action Performance Retires Additional $5.2 Million 4 3/4 Percent Notes Due 2005 in Ongoing Debt Reduction Strategy; Moody's Upgrades Credit Ratings
PHOENIX--June 28, 2001--Action Performance Companies Inc. (Company) , the leader in the design, marketing, promotion, and distribution of licensed motorsports merchandise, today reported it has repurchased an additional $5.2 million of its 4 3/4 percent convertible subordinated notes due 2005 in an ongoing strategy to reduce its long-term debt.The $5.2 million of notes were retired in exchange for 199,200 shares of common stock. The shares used in these private transactions were previously acquired by the Company as treasury shares at an average price of $8.25 per share under a previously authorized stock repurchase program.
Since January 2001, the Company has retired $38.2 million of the 4 3/4 percent notes due 2005, leaving $61.8 million outstanding.
David Martin, Action Performance CFO, commented: "This additional debt reduction further improves Action's balance sheet and will result in lower levels of future interest and principal repayment commitments. We believe that Moody's recent upgrade of the remaining notes and the Company's credit rating confirms the success of our continuing efforts to strengthen the Company's financial position."
Martin further stated that the gain on this transaction will be recorded as an extraordinary item in the Company's fiscal 2001 third quarter results.
About Action Performance
Action Performance Companies Inc. is the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs, and other memorabilia.
The Company markets and distributes products through a variety of channels, including trackside at racing events, a worldwide network of wholesale distributors and specialty dealers, QVC, the Racing Collectables Club of America (RCCA), goracing.com, and mass retail department stores and chains.
This news release contains forward-looking statements regarding the Company's debt-reduction strategy, financial condition and shareholder value. The Company's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such differences include, among others, the actual impact of the exchange on the company, competitive pressures, acceptance of the Company's products and services in the marketplace, the success of new marketing programs, the Company's ability to successfully execute its restructuring, and other risks discussed in the Company's Form 10-K dated Sept. 30, 2000, on file with the U.S. Securities and Exchange Commission.