Gardenburger Works on Debt

Gardenburger Works on Debt

PORTLAND, Ore.--In an effort to combat slumping sales and continued net losses, Gardenburger Inc. (OTCBB:GBUR) reported it now has no significant debt maturing prior to December 2004. The company completed a comprehensive refinancing of its debt obligations and extension of the maturities of its existing convertible senior subordinated notes and convertible preferred stock.

As part of its refinancing efforts, the company obtained an $8 million term loan and $7 million line of credit from CapitalSource Finance LLC, which Gardenburger used to purchase the manufacturing equipment it had been leasing. According to Scott Wallace, Gardenburger's chief executive officer, this is a significant event in the company's turnaround plan. For fiscal year 2001, the company reported sales that were down 16.2 percent, as well as reporting a net loss of $2.8 million.