S&P Analyst Research Notes and other Company News
September 23, 2009
09:15 am ET ... S&P REITERATES SELL RECOMMENDATION ON SHARES OF
LOJACK CORPORATION (LOJN 5.03**): LOJN agrees to settle disputes with
Kington Holdings, its former China licensee.We think legal risk is greatly
reduced, as all cases related to the termination of the license agreement are
dismissed. As a result, LOJN is required to pay $18.3M, or $13.6M after tax, by
September 25.We believe the settlement reduces LOJN's net cash balance to
about $14M from $54M, which includes cash collateral of $22.5M, as it entered
into an agreement with a lender, waiving its non-compliance with financial
covenants through year-end.We expect LOJN to amend or replace its credit
facility. /A.Zino-CFA