Printer Friendly

MASCOTECH, INC. ANNOUNCES PLANNED DISPOSITION OF ITS ENERGY-RELATED BUSINESSES AND OTHER FINANCIAL TRANSACTIONS

 TAYLOR, Mich., Nov. 23 /PRNewswire/ -- MascoTech, Inc. (NYSE: MSX) has announced the planned disposition of its energy-related businesses as a part of its long-term strategic plan to deleverage its balance sheet and increase the focus on its core operating capabilities. The disposition of these businesses, which had 1992 sales and operating profit of approximately $200 million and $3 million, respectively, is expected to be completed in 1994. The company believes that these businesses, which have net assets of approximately $180 million, will be sold for proceeds expected to exceed $150 million. These proceeds will be applied to reduce the company's indebtedness.
 MascoTech also announced that it is calling all of its 6-percent Convertible Subordinated Debentures due 2011 for redemption on Dec. 23, 1993. Of the $187 million of Debentures outstanding, Masco Corporation (NYSE: MAS) owns $130 million with the remainder held by the public. Masco Corporation has committed to convert its Debentures into common stock. The remaining Debentures held by the public will be redeemed for cash, unless previously converted into MascoTech common stock. The Debentures are convertible at $18 per share (approximately 55-1/2 common shares per $1,000 Debenture). The regular interest payment on outstanding Debentures will be made on Dec. 15, 1993, to holders who have not previously converted. MascoTech common stock, traded on the New York Stock Exchange, closed at $21.625 on Nov. 22.
 In addition, the company stated that it intends to redeem, in early 1994, all of its publicly owned $250 million 10-1/4 percent Senior Subordinated Notes due 1997. MascoTech has also announced that it will redeem for cash the $100 million of its 10 percent Preferred Stock currently owned by Masco Corporation.
 These transactions will result in a substantial improvement in MascoTech's balance sheet and a significant reduction in its future financing costs. The company expects that expenses related to the early extinguishment of debt and the probable loss to be incurred from the disposition of the energy-related businesses will result in an approximate $.40 per common share charge in the fourth quarter of 1993. However, the ongoing reductions in the company's interest and preferred dividend costs should increase 1994 earnings by approximately $.20 per common share and 1995 and future annual earnings by approximately $.30 per common share (assuming no additional change in outstanding common shares).
 MascoTech manufactures transportation-related and other commercial and specialty industrial products.
 -0- 11/23/93R
 /CONTACT: Kenneth J. Zak, manager-investor relations of MascoTech, 313-274-7400, Ext. 6386/
 (MSX MAS)


CO: MascoTech, Inc. ST: Michigan IN: SU:

ML-KR -- DE003R -- 7320 11/23/93 13:55 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 23, 1993
Words:429
Previous Article:INTELLIGENT ELECTRONICS AND JONES COMPUTER NETWORK PILOT CABLE TV SERIES ON LATEST TECHNOLOGY
Next Article:MASCOTECH, INC. ANNOUNCES REDEMPTION PRICE
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters