NEW YORK (Standard&Poor's) Aug. 18, 2003--Standard&Poor's Ratings Services said today that Oshkosh Truck Co.'s (BBB-/Stable/--) announcement that it will redeem its $100 million, 8.75% subordinated notes due 2008 has no immediate effect on the corporate credit or bank loan ratings on the company. The transaction will be executed at a premium, leading to a fourth quarter charge of approximately $6 million. Oshkosh is expected to use cash on hand, as well as borrowings under its committed revolving bank facility due 2006. The transaction, which is expected to close in September, will save the company about $6.5 million of interest expense in fiscal 2004, but will modestly reduce financial flexibility and shorten the company's debt maturity schedule.
