AMERICAN BRANDS TO REDEEM 7-5/8% EURODOLLAR CONVERTIBLE DEBENTURES DUE 2001 AND 9-1/8% DEBENTURES DUE 2016 -- REDUCING FULLY DILUTED SHARES BY 2.8 MILLION.OLD GREENWICH Old Greenwich is a neighborhood or section in the southeast corner of Greenwich in Fairfield County, Connecticut, United States. The Old Greenwich Railroad Station serves commuters in the neighborhood. , Conn.--(BUSINESS WIRE)--Jan. 17, 1996--American Brands, Inc. (NYSE-AMB), announced today that it will redeem its 7-5/8% Eurodollar Convertible Debentures Due 2001 and its 9-1/8% Debentures Due 2016. The Company expects that ongoing interest expense will be reduced and the redemption of the 7-5/8% Eurodollar Convertible Debentures will reduce the number of fully diluted shares by 2.8 million. In connection with the redemptions, the Company will record an "extraordinary items" charge of approximately $10 million, or 6 cents per Common share, in the first quarter of 1996. 7-5/8% Eurodollar Convertible Debentures Due 2001 The Company will redeem on March 5, 1996 all of its $150,000,000 7-5/8% Eurodollar Convertible Debentures Due 2001 at a redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of 103.8125% of the principal amount plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . Notice of such redemption will be published in London and Luxembourg on or before February 1, 1996. The debentures will no longer be outstanding after the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. and interest on the debentures will cease to accrue from and after March 5, 1996. The right of holders of the 7-5/8% Eurodollar Convertible Debentures Due 2001 to convert their debentures into Common stock of the Company at a price of $53.19 per share will terminate at the close of business on the redemption date. 9-1/8% Debentures Due 2016 The Company will redeem on March 1, 1996 all of its $150,000,000 9-1/8% Debentures Due 2016 at a redemption price of 104.4375% of the principal amount plus accrued interest. The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. (National Association), the redemption agent, will mail by January 30 a Notice of Redemption regarding the debentures to holders of record. The debentures will no longer be outstanding after the redemption date and interest on the debentures will cease to accrue from and after March 1, 1996. Headquartered in Old Greenwich, Connecticut, American Brands is an international consumer products holding company. Its operating companies have powerhouse brands and leading market positions. Major distilled spirits brands sold by Jim Beam Jim Beam is a brand of bourbon whiskey, distilled in Clermont, Kentucky. This brand of whiskey has been distilled since 1795. The Jim Beam brand is owned by Beam Global Spirits & Wine, which is in turn owned by holding company Fortune Brands. Brands Co. include Jim Beam and Old Grand-Dad bourbons and DeKuyper cordials. MasterBrand Industries, Inc.'s leading hardware and home improvement brands include Moen faucets, Master locks and Aristokraft cabinets. ACCO ACCO American College of Chiropractic Orthopedists ACCO Association of County Commissioners of Oklahoma ACCo American Cyanamid Company ACCO Adenoid Cystic Carcinoma Organization ACCO American Clip Company ACCO Assistant Central Control Officer World Corporation's major office product brands include Day-Timer and Swingline. Acushnet Company's golf brands include Titleist, Pinnacle and Foot-Joy. Gallaher Limited sells tobacco products, principally in Europe, where its major brands include Benson and Hedges and Silk Cut. CONTACT: American Brands, Old Greenwich Media Relations: Investor Relations Investor relations The process by which the corporation communicates with its investors. : Roger W. W. Baker Daniel A. Conforti (203) 698-5148 (203) 698-5132 |
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