$50 MILLION LADD STOCK OFFERING COMPLETED
$50 MILLION LADD STOCK OFFERING COMPLETED HIGH POINT, N.C., May 12 /PRNewswire/ -- LADD Furniture, Inc.
(NASDAQ-NMS: LADF) chairman Richard R. Allen has announced that a 5.5 million share secondary public offering of LADD common stock was completed today at a price of $9.00 per share, the market bid price. Allen said 3.5 million shares were sold by the company and 2.0 million shares were sold by two LADD stockholders. Managing underwriters of the offering were Dillon, Read & Co. Inc., Interstate/Johnson Lane Corporation and Wheat First Butcher & Singer Capital Markets.
Allen said LADD will realize net proceeds of $29.7 million from the stock sale after paying expenses associated with the offering. He said these funds will be used to reduce outstanding debt under the company's revolving credit agreement. He added, "This stock offering will strengthen LADD's capital base by lowering the company's long-term debt-to-capitalization ratio to 36% from 49% at the end of 1992's first quarter and will reduce annual interest expense by approximately $2 million." As a result, Allen said, "LADD will be better positioned to take advantage of future opportunities in the furniture industry as they arise." In addition to the 3.5 million common shares sold by the company, Don A. Hunziker, chairman emeritus, sold 1.75 million shares in the offering and O. William Fenn, Jr., former vice chairman, sold 250,000 shares. Fenn retired from LADD at the end of March, while Hunziker has announced his plans to retire at the end of September. Following the stock sale, Hunziker owns 4.4 percent of LADD's outstanding common stock and Fenn owns 4.7 percent. Both men will continue as LADD directors. Allen said the company has granted the underwriters an option to purchase an additional 525,000 shares of LADD stock at the offering price during the next 30 days to cover over-allotments. "If the underwriters exercise their over-allotment option in full, LADD will realize an additional $4.5 million in net proceeds," Allen noted. Headquartered in High Point, NC, LADD is one of the largest U.S. producers of residential and contract furniture, marketing its broad range of wood, upholstered and metal furniture under the major brand names American Drew, American of Martinsville, Barclay, Brown Jordan, Clayton Marcus, Daystrom, Design Horizons, Lea Industries and Pennsylvania House. LADD also owns and operates two support companies, Lea Lumber & Plywood and LADD Transportation and its stock is traded on the over-the-counter National Market System under the NASDAQ symbol LADF. -0- 5/12/92 /CONTACT: John J. Ong, LADD Furniture, Inc., 919-888-6353/ (LADF) CO: LADD Furniture, Inc. ST: North Carolina IN: REA SU: OFR
CM -- CH008 -- 9247 05/12/92 15:23 EDT
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|Date:||May 12, 1992|
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