American Brands to redeem 7-3/4% Eurodollar Convertible Debentures due 2002, 5-3/8% Eurodollar Convertible Debentures due 2003 and 5-3/4% Eurodollar Convertible Debentures due 2005.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)--October 15, 1996-- American Brands, Inc. (NYSE-AMB) announced today that it will redeem its 7-3/4% Eurodollar Convertible Debentures Due 2002, its 5-3/8% Eurodollar Convertible Debentures Due 2003 and its 5-3/4% Eurodollar Convertible Debentures Due 2005. The aggregate principal amount currently outstanding of these debentures is less than $20 million and total shares issuable upon conversion are less than 600,000. The costs related to the redemption of these debentures will be immaterial. 7-3/4% Eurodollar Convertible Debentures Due 2002 The Company will redeem on December 12, 1996 all of its outstanding 7-3/4% Eurodollar Convertible Debentures Due 2002 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 100.775% 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. . The right of holders of the 7-3/4% Eurodollar Convertible Debentures Due 2002 to convert their debentures into Common Stock of the Company at a price of U.S. $28.35 per share will terminate at the close of business on December 12, 1996. 5-3/8% Eurodollar Convertible Debentures Due 2003 The Company will redeem on December 12, 1996 all of its outstanding 5-3/8% Eurodollar Convertible Debentures Due 2003 at a redemption price of 100% of the principal amount plus accrued interest. The right of holders of the 5-3/8% Eurodollar Convertible Debentures Due 2003 to convert their debentures into Common Stock of the Company at a price of U.S. $29.00 per share will terminate at the close of business on December 12, 1996. 5-3/4% Eurodollar Convertible Debentures Due 2005 The Company will redeem on December 12, 1996 all of its outstanding 5-3/4% Eurodollar Convertible Debentures Due 2005 at a redemption price of 100% of the principal amount plus accrued interest. The right of holders of the 5-3/4% Eurodollar Convertible Debentures Due 2005 to convert their debentures into Common Stock of the Company at a price of U.S. $39.50 per share will terminate at the close of business on December 12, 1996. Notices of the respective redemptions will be published in London and Luxembourg (and mailed to registered holders of the 7-3/4% Eurodollar Convertible Debentures Due 2002) on or about October 22, 1996. The debentures will no longer be outstanding after December 12, 1996 and interest on the debentures will cease to accrue on and after December 12, 1996. American Brands is an international consumer products holding company with headquarters in Old Greenwich, Connecticut. Its operating companies have powerhouse brands and leading market positions. Major distilled spirits brands sold by units of JBB JBB Joint Base Balad (Iraq) JBB John Benjamin Band Worldwide, Inc. include 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. and Old Grand-Dad Old Grand-Dad is the name of a bourbon whiskey from Nelson County, Kentucky. The company was created by Raymond B. Hayden and named after his grandfather Basil Hayden, Sr., a well known distiller during his lifetime who is depicted on the front of each bottle. bourbons, DeKuyper cordials and Whyte & Mackay Scotch. MasterBrand Industries has leading hardware and home improvement brands including 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, Cobra, Pinnacle and Foot-Joy. Gallaher Limited sells tobacco products internationally, principally in Europe, where its major brands include Benson and Hedges and Silk Cut Silk Cut is brand of low tar cigarette produced by the Gallaher Group. The packaging is characterised by a distinctive stark white packet with the brand name in a purple square. Tobacco only makes up 75% of the filling; the rest is Cytrel. . Plans to spin off Gallaher were announced on October 8, 1996. CONTACT: American Brands, Inc., 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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