JOY TECHNOLOGIES INC. ISSUES STATEMENT
JOY TECHNOLOGIES INC. ISSUES STATEMENT PITTSBURGH, Nov. 1 /PRNewswire/ -- Joy Technologies Inc. today
announced that it commenced offers to purchase any and all of its outstanding resettable senior secured notes due May 15, 1996, not theretofore called for redemption on Nov. 16, 1991, at a price of $1,068.75 per $1,000 principal amount plus accrued interest to, but not including the applicable date of purchase; and any and all of its outstanding 13-3/4 percent senior subordinated debentures due 1999, at a price of $1,091.00 per $1,000 principal amount, plus accrued interest to but not including the applicable date of purchase.
The offers and withdrawal rights expire at 12 midnight, New York City time, on Dec. 2, 1991, unless extended. The dealer managers for the offers are Morgan Stanley & Co. Incorporated and BT Securities Corporation. The depositary for the offers is Bankers Trust Company. Joy expects that, on the date securities are purchased pursuant to the applicable offer, or, if either offer expires or terminates without the purchase of securities thereunder, on or after the applicable expiration date, Joy will deposit with the trustee for the applicable issue of securities funds sufficient to satisfy and discharge Joy's obligations with respect to any such securities not purchased pursuant to such offer, subject to the availability of funds under a new bank facility (for which Joy has obtained financing commitments). In a satisfaction and discharge, holders of securities whose securities are not purchased pursuant to an offer would receive, with respect to the notes, payments on each of May 15, 1992, and Nov. 15, 1992, in respect of accrued interest and a payment on Nov. 16, 1992, in respect of principal, premium and accrued and unpaid interest; and, with respect to the debentures, a payment on Jan. 15, 1992, in respect of accrued interest and a payment on July 15, 1992, in respect of principal, premium and accrued interest. Each offer is conditioned upon, among other things, (1) funds being available under a new bank facility (for which Joy has obtained financing commitments) sufficient to enable Joy to purchase all securities validly tendered pursuant to the applicable offer, to satisfy and discharge its obligations with respect to any securities not so purchased and to pay related costs and expenses and (2) Joy having consummated the pending public offering of shares of its Class A common stock. In addition, the debenture offer is conditioned upon all notes then outstanding having been purchased pursuant to the note offer or, if not so purchased, satisfied and discharged. Neither offer is subject to a minimum tender condition. There are currently outstanding $120 million principal amount of notes and $185 million principal amount of debentures. Joy has called for redemption $25 million principal amount of notes on Nov. 16, 1991 (prior to the expiration date). The note offer is not being made with respect to notes so called for redemption. The purpose of the offers is to reduce the cost to Joy of the retirement of all of its outstanding notes and debentures. The offers are part of Joy's recapitalization plan to reduce the cost of its debt, redeem its preferred stock and provide Joy with greater financial and operating flexibility. Joy is the world's leading manufacturer and servicer of mining equipment for the underground extraction of coal, with facilities in the United States, South Africa, the United Kingdom and Australia. Joy also is a major North American supplier of air pollution control and ash handling equipment used by electrical utilities and various industrial companies that utilize combustion operations. In 1987 Joy consummated a leveraged buyout sponsored by Adler & Shaykin, a private investment firm, of Joy Manufacturing Company, a Pennsylvania corporation. /delval/ -0- 11/1/91 /CONTACT: James Q. Grimshaw, vice president and treasurer of Joy Technologies Inc., 412-562-4500/ CO: Joy Technologies Inc. ST: Pennsylvania IN: MNG SU: DM -- PG007 -- 0332 11/01/91 15:39 EST
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|Date:||Nov 1, 1991|
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