Universal Power Announces Principal Reduction, Early Note Repayment (UPG)

12/22/2009-Tuesday, Universal Power Group (AMEX:UPG) announced it had agreed to repay its outstanding 6% notes, due June 20, 2012, early in exchange for a 7.5% principal reduction and that it has prepaid the remaining $4.0 million in principal less the discount.

The Texas-based battery supplier originally issued the notes to Zunicom, one of its significant shareholders, in conjunction with Universal Power's IPO in 2006.

Universal Power's President and CEO Ian Edmonds said, "The early repayment of our Zunicom notes marks another important and positive step in the growth of UPG. With the retirement of this debt, we will receive approximately $300,000 in benefit through the negotiated principal discount we were able to secure. Also as a result, we will significantly reduce our annual interest costs and eliminate nearly $1.5 million in principal payments annually."

Shares of Universal Power are trading up 0.4% in late morning activity.

Write to Chip Brian at cbrian@tradethetrend.com

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