In a move that will save an estimated $3 million per year in interest payments, Baker International Corp. is redeeming $60 million in notes on June 15.
Baker, which suffered a $254.9-million loss during its second quarter, is calling in its notes to take advantage of lower interest rates, the company's chief financial officer, Max L. Lukens, said. The notes, due in 1990, carry a 10.2% interest rate. Lukens said the new financing, in Swiss francs, will be approximately $100 million (in U.S. dollars) and carry a 7.82% interest rate. By the time Baker completes other refinancing measures later in the year, Lukens said, the company will save $3 million a year in interest charges.