Technitrol Sheds Assets To Repay Debt; Shares Soar

PHILADELPHIA (AP) — Technitrol Inc. said Tuesday it has reached a deal to sell part of its components business to private equity fund Altor Fund III for $200 million in cash, using the proceeds to help alleviate the company's debt burden.

Technitrol said the sale will allow it trim its interest expense on outstanding debt by roughly $2 million and immediately improve its debt-to-EBITDA ratio, referring to earnings before interest, taxes, depreciation and amortization. The ratio is often a critical component of debt covenants.

Technitrol added that its bank lenders have agreed to alter terms on its senior credit line to allow for the sale of more assets and faster debt repayments. ...