Standard & Poor's Upgrades Directed Electronic's Credit Ratings
VISTA, Calif., Feb. 14, 2006 -- Directed Electronics, Inc. , the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales, and a major supplier of car and home audio, mobile video and satellite radio products, announced today that Standard & Poor's recently raised Directed Electronics' corporate credit rating to BB- from B+. Additionally, Standard & Poor's raised its rating on the Company's senior secured credit facility to BB- from B+.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020424/DIRECTLOGO )
"We are very pleased that Standard & Poor's raised its ratings on Directed Electronics following our December 2005 IPO," commented James E. Minarik, President and Chief Executive Officer of Directed Electronics, Inc. "The higher rating reflects Directed Electronics' stronger balance sheet, substantial debt reduction and reduced interest expense related to the recent 100 basis point reduction in the Company's term loan interest rate from LIBOR plus 3.25% to LIBOR plus 2.25%. We expect our greater financial flexibility to help facilitate the execution of our future growth plans."
Standard & Poor's complete press release announcing the upgrade can be found at www.standardandpoors.com. Directed used the majority of its IPO proceeds to fully repay its $74 million of subordinated notes, which significantly reduces the Company's cash interest expense.
Directed Electronic's credit protection measures improved as well, with pro forma lease-adjusted total debt to EBITDA declining to about 3.9x from more than 5x at Sept. 30, 2005. Standard & Poor's believes that in 2006, Directed Electronics' leverage should further decline because of expanding EBITDA generated by existing product lines.
About Directed Electronics
Directed Electronics is the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales and a major supplier of home and car audio, mobile video, and satellite radio products. As the sales leader in the vehicle security and convenience category, Directed offers a broad range of products, including security, remote start, hybrid systems, GPS tracking, and accessories, which are sold under its Viper, Clifford, Python, and other brand names. Directed's car audio products include speakers, subwoofers, and amplifiers sold under its Orion, Precision Power, Directed Audio, a/d/s/, and Xtreme brand names. Directed also markets a variety of mobile video systems under the Directed Video, Directed Mobile Media and Automate brand names. In the home audio market, Directed designs and markets award-winning Definitive Technology and a/d/s/ premium loudspeakers. In August 2004, Directed began marketing and selling certain SIRIUS-branded satellite radio products, with exclusive distribution rights for such products to Directed Electronics' existing U.S. retailer customer base.
Safe Harbor Statement
Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by the use of terms such as "may," "should," "might," "believe," "expect," "anticipate," "estimate" and similar words, although some may be expressed differently. Forward-looking statements in this release include, but are not limited to, statements as to savings in interest expense, as well as other growth opportunities. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of Directed Electronics to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include competition in the consumer electronics industry, development of new products and changing demand of customers, reliance on certain key customers, adverse developments affecting SIRIUS Satellite Radio, ability to service debt obligations, and ability to realize on investments made in the business. Certain of these factors, as well as various additional factors, are discussed from time to time in the reports filed by Directed Electronics with the Securities and Exchange Commission, including the Form S-1. Directed Electronics disclaims any intent or obligation to update these forward-looking statements.
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020424/DIRECTLOGOAP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com