Temper Sports, the maker of golf shafts, has retained investment banking firm
Lazard Middle Market to explore alternatives to enhance the company's capital
structure and value for the future. In conjunction with this action, the company
did not make the recently scheduled March payments on its revolving bank credit
facility and subordinated notes, resulting in non-compliance on its various
debt agreements.
In order
to resolve this compliance issue, True Temper management and its advisors
remain engaged in ongoing discussions with its lenders to develop an
appropriate plan and capital structure for the future.
Commenting
on the move, Scott Hennessy, President and CEO noted, “As we endeavor to
restructure our overall debt profile, we maintain our commitment and focus on
being a world leader in high performance sporting goods equipment. Delivering
innovative products and services to our growing global customer base remains
the focal point of our ongoing operational strategy. In launching this capital
structure review, the Company is supported by a strong cash position on its
balance sheet, and True Temper customers, suppliers and employees should not be
directly impacted, and will ultimately benefit from a much stronger worldwide
enterprise.”
True
Temper Sports announced the hiring of Lazard while noting that revenues for the
company will exceed $123 million in 2008, eclipsing the previous record of $117
million. Profitability for calendar 2008 “improved significantly and
finished in line with company expectations.”
True
Temper Sports markets golf shafts and other
recreational sports products under the True Temper, Grafalloy, Royal
Precision and Alpha Q brands.
