COKE CONSOLIDATED'S REFINANCING TO BOOST EARNINGS
COKE CONSOLIDATED'S REFINANCING TO BOOST EARNINGS CHARLOTTE, N.C., Nov. 2 /PRNewswire/ -- Coca-Cola Bottling Co.
Consolidated (NASDAQ-NMS: COKE) today announced the refinancing of $50 million of Series B Cumulative Non-Convertible Preferred Stock. This preferred stock was held by Coca-Cola Financial Corporation, a subsidiary of The Coca-Cola Company (NYSE: KO), and was refinanced on Oct. 30, 1992 with a $50 million, 3-year bank term loan with a floating rate, initially set at approximately 4 percent. The Company expects to repay the bank loan with internally-generated cash flow over the next three years.
James L. Moore, President and Chief Executive Officer, said that based on current interest rates, refinancing this preferred stock will improve income available to common shareholders by $2.7 million, or approximately $.30 per share, on an annual basis. The impact on the 1992 fourth quarter income available to common shareholders will be $450,000, or approximately $.05 per share. Actual results will be dependent upon prevailing interest rates. Combined with the refinancing of the preferred stock, the Company intends to refinance an additional $25 million of other similar financial instruments in a series of transactions occurring prior to the end of the third quarter of fiscal 1993. At that point, all of the Company's currently-outstanding preferred stock and a portion of the Company's acquisition debentures will have been retired. The Coca-Cola Company currently holds approximately a 30 percent equity interest in Coke Consolidated. The $50 million in capital represented by the Series B Cumulative Non-Convertible Preferred Stock was provided by Coca-Cola Financial Corporation at the time of Consolidated's acquisition of Sunbelt Coca-Cola Bottling Company in December 1991. With this acquisition, Coke Consolidated became the nation's second largest Coca-Cola bottler with operations in 12 southeastern states. -0- 11/2/92 /CONTACT: David V. Singer, Chief Financial Officer, Coca-Cola Bottling Co. Consolidated, 704-551-4604/ (COKE KO) CO: Coca-Cola Bottling Co. Consolidated; The Coca-Cola Company ST: North Carolina IN: FOD SU:
CM -- CH006 -- 1582 11/02/92 11:55 EST
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|Date:||Nov 2, 1992|
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