DDL Electronics Repays Its Senior Secured Notes

DDL Electronics Inc. has repaid its 10% Senior Secured Notes due July 1 in the aggregate amount of $5.3 million, the Newbury Park company said.

A portion of the notes were paid off with $2 million borrowed from a private investor under a 8% promissory note that is convertible into DDL common stock at 75 cents per share. The convertible note matures Aug. 31, 1998, and is secured by a pledge of all of the outstanding shares of SMTEK Inc., DDL’s U.S. operating subsidiary.

DDL will give the private investors two seats on its seven-member board of directors and has agreed to acquire a privately held electronics contract manufacturing company in Florida that is controlled by the investor for 9 million shares of DDL’s common stock.

The acquisition is subject to the approval of DDL’s stockholders.

DDL provides components and services for manufacturers in the computer, telecommunications, industrial and aerospace industries.