Carlyle Completes Bank Financing for Preferred Stock Redemption.CARLSTADT, N.J.--(BUSINESS WIRE)--June 23, 1998--Carlyle Industries, Inc. (NYSE NYSE See: New York Stock Exchange :CRL CRL - Carnegie Representation Language. Carnegie Group, Inc. Frame language derived from SRL. Written in Common LISP. Used in the product Knowledge Craft. ) today announced that it has closed on a $14 million credit facility with Fleet Bank. The company plans to use $10.0 million of the financing for the redemption of Series B preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. totaling $12.5 million, $3.0 million for potential acquisitions, and $1.0 million for working capital. Approximately 10.1 million shares of preferred would be redeemed at the current redemption value of approximately $1.23 per share. The shares will be redeemed pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. in proportion to the holdings of shareholders as of the record date, June 22, 1998. After the redemption, approximately 10.7 million shares of preferred will remain. Approximately 19.3 million shares or 93 percent of the preferred issue of 20.8 million shares is owned by Noel Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :NOEL). Noel's preferred holding represents 68 percent of the aggregate voting power, which will be reduced to 55 percent after the redemption. Carlyle, through its Blumenthal/Lansing subsidiary, packages and distributes an extensive variety of buttons and craft products for home sewing and crafting to mass merchandisers, specialty stores and independent retailers. Carlyle was formerly known as Belding Heminway Company, Inc., a name that was sold with the Thread Division. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statements Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1996 This release contains, in addition to historical information, forward-looking statements about the redemption of preferred stock. The forward-looking statements were prepared on the basis of certain assumptions which relate to the payment and use of proceeds of the preferred stock redemption. Even if the assumptions upon which the projections are based prove to be accurate and appropriate, the actual redemption of the preferred and the use of proceeds may vary from current expectations. CONTACT: Donald R. Dwight, 603/795-2800 |
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