Cytec announces completion of repurchase of its Series B Preferred Stock.WEST PATERSON West Paterson (păt`ərsən), borough (1990 pop. 10,982), Passaic co., NE N.J., a suburb of Paterson; inc. 1914. Electric, electronic, and photographic products are made in the borough. , N.J.--(BUSINESS WIRE)--Nov. 7, 1995--Cytec Industries Inc. (NYSE NYSE See: New York Stock Exchange :CYT) announced today the completion of its previously announced repurchase of its Series B Cumulative Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". from American Cyanamid Company, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of American Home Products Corporation (NYSE: AHP AHP Assistant House Physician. ). The repurchase price was approximately $305 million and was funded from internally generated cash, $100 million in bank borrowings, and the proceeds of a public offering of 3.2 million shares of Cytec Common Stock. J.P. Cronin, vice president and chief financial officer of Cytec, stated that: "This completes the restructuring of Cytec's balance sheet which was announced August 17, 1995 which also included the repurchase of Cytec's Series A Cumulative Adjustable 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. from American Cyanamid Company on August 23, 1995, for $90 million plus accrued dividends of $1.2 million. The net effect of the repurchase of the Series B Preferred and the issuance of the 3.2 million shares in the public offering is to reduce by approximately 12.2% the number of common shares used in the calculation of fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . If the underwriters of the public offering exercise their overallotment options, however, the decrease will be approximately 10.6%." Cytec Industries Inc. is a vertically integrated industrial chemical company which focuses on value-added specialty products. The company develops, manufactures and markets specialty chemicals and specialty materials and building block chemicals serving a broad group of end users, including the water treatment, paper, mining, coatings, plastics, aerospace, textile and automotive industries. The company's building block chemicals are used internally and marketed externally. Cytec operates over 30 manufacturing, research and development, and distribution facilities primarily in the United States, Canada, Mexico, the United Kingdom and the Netherlands. The company employs approximately 4,000 people in the United States and approximately 1,000 people in other countries. In addition, the company has a 50 percent interest in five unconsolidated associated companies. CONTACT: Cytec Industries Inc., West Paterson Kumar Shah, 201/357-3298 (analyst contact) or George Yuro, 201/357-3319 |
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