VALLEY FORGE, Pa.--June 3, 2003-- IKON Office Solutions today announced a series of financing initiatives, including the tender for $240.5 million of IOS Capital, LLC's 9 3/4% notes due June 15, 2004 and a simultaneous notes offering.
"Recent actions by the rating agencies prompted us to take more aggressive measures to provide IKON with greater financial flexibility," stated Matthew J. Espe, Chairman and CEO. "The tender and simultaneous notes offering announced in a separate release this morning allow us to satisfy certain early maturity provisions in our existing $300 million credit facility."
The successful completion of the tender offer, in addition to actions to repurchase non-finance subsidiary debt, is expected to negatively impact earnings per diluted share by $.09 to $.11, which is expected to be recognized as a loss on the early extinguishment of debt in the Company's third fiscal quarter ending June 30, 2003. The Company's previously communicated expectations for the third quarter and full year results did not anticipate these accelerated financing activities.
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