Reptron Electronics Inc., Tampa, Fla., said it will not make an interest payment due today on some of its convertible bonds and is exploring alternative options to refinance bond debt.
The distributor/EMS provider revealed in a statement that its fourth-quarter operating results did not meet requirements of an Oct. 10 loan agreement with its secured lenders, putting it in default.
Reptron will not make its semi-annual interest payment to holders of its 6 3/4% convertible bonds to avoid immediate exercise of actions permitted under the loan agreement in event of a default. Although the secured lenders have not waived this default, they are currently providing financing under the Loan and Security Agreement.
Reptron said it plans to hire advisors and open talks with bondholders and doesn't expect any interruption in its operations or in payments on other obligations.
The company plans to push back reporting of its fourth-quarter operating results to about March 24, which will enable more up-to-date disclosure of refinancing activity.