DOW JONES NEWSWIRES
Newell Rubbermaid Inc. (NWL) reduced its debt by $250 million as
it closed a new $200 million accounts-receivable facility to
replace a $450 million credit line.
The consumer-goods maker said the new facility is through Bank
of America Corp. (BAC) and JPMorgan Chase & Co.(JPM).
Consumer-products makers have been hurt in recent quarters as
shoppers turned to lower-cost and private-label brands. Newell
Rubbermaid slashed production and jobs to offset the decline.
However, in July, Chief Executive Mark Ketchum said the company's
retail customers' efforts to draw down inventories appeared to be
mostly complete, though its commercial and industrial customers
were more active in destocking into the second and third
quarters.
The company - whose brands include storage products, Sharpie and
Paper Mate - said the latest action completes its refinancing moves
for this year. Newell Rubbermaid in March also issued $645 million
in notes.
Shares closed at $15.11 on Tuesday and didn't trade premarket.
The stock is up 55% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com