Printer Friendly

PAINEWEBBER TO REPURCHASE $75,000,000 OF ITS 7 PERCENT PREFERRED STOCK AND REPLACE REMAINING $150,000,000 WITH PARTICIPATING PREFERRED STOCK

PAINEWEBBER TO REPURCHASE $75,000,000 OF ITS 7 PERCENT PREFERRED STOCK AND REPLACE REMAINING $150,000,000 WITH PARTICIPATING PREFERRED STOCK
 NEW YORK, Oct. 13 /PRNewswire/ -- PaineWebber Group Inc. (NYSE: PWJ) announced today that it has signed a letter of intent to amend the existing investment agreement between PaineWebber and The Yasuda Mutual Life Insurance Company of Tokyo. Under the proposed amendment, PaineWebber would repurchase $75,000,000 (1,685,394 shares) of its 7 percent cumulative convertible exchangeable voting preferred stock, Series A (the "7 percent preferred stock") from Yasuda for approximately $83,000,000 and replace Yasuda's remaining $150,000,000 of 7 percent preferred stock with 7,758,632 shares of a series of cumulative participating voting convertible preferred stock (the "participating preferred stock") with an initial dividend rate of 2.48 percent per annum and a liquidation preference of $19.33 per share. The transaction, which is subject to the negotiation and execution of definitive documentation, is anticipated to close on Nov. 5, 1992.
 As a result of the transaction, PaineWebber's annual dividend of $15.75 million on the $225 million of the 7 percent preferred stock would be reduced to $3.72 million on the participating preferred stock. In addition, PaineWebber's common stock equivalents would be reduced by approximately 3.9 million shares.
 The participating preferred stock will be convertible at any time into 7,758,632 shares of common stock at a conversion price of $19.33 per share. PaineWebber may call for redemption up to $75,000,000 of the participating preferred stock prior to March 31, 1993 and thereafter up to the entire amount under certain circumstances. Each share of participating preferred stock will have one vote on all matters on which holders of PaineWebber common stock are entitled to vote. Yasuda will continue to maintain all of its rights under the investment agreement, including two seats on PaineWebber's board of directors, as long as its aggregate holding of common stock or common stock equivalents is at least 5,000,000 shares.
 "We are pleased that the strong earnings performance and financial strength of our company has created this opportunity to replace the 7 percent preferred stock with a preferred whose yield is expected to be the same as that paid on our common stock. The transaction further strengthens our balance sheet since the participating preferred stock financially will be considered equivalent to common stock and hence our equivalent common equity will rise to more than $1 billion. PaineWebber and Yasuda have enjoyed a good and mutually beneficial relationship and we look forward to continuing and building our relationship in the years to come," said Donald B. Marron, chairman and CEO of PaineWebber.
 A Yasuda spokesman said, "We are pleased with PaineWebber's financial performance and look forward to continuing our excellent relationship with PaineWebber's management team."
 At June 30, 1992, PaineWebber had 43.1 million common shares outstanding and 60.8 million average common shares on a fully diluted basis.
 In February 1992, PaineWebber called for redemption $75,000,000 of its 7 percent preferred stock and repurchased 3,879,317 shares of its common stock for $85,344,974 from Yasuda following its decision to convert the block into common stock.
 PaineWebber Group Inc., with its subsidiaries PaineWebber Incorporated and PaineWebber International, serves the investment and capital needs of a worldwide client base. The firm employs approximately 13,500 people in 274 offices worldwide.
 -0- 10/13/92
 /CONTACT: Beverly T. Spano of PaineWebber, 201-902-6775, or Jeffrey Z. Taufield of Kekst and Company, 212-593-2655, for PaineWebber/
 (PWJ) CO: PaineWebber Group Inc. ST: New York IN: FIN SU:


SH-AH -- NY022 -- 9259 10/13/92 11:13 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 13, 1992
Words:616
Previous Article:PYRAMID INTRODUCES MAINFRAME-CLASS MISERVER ES SERIES; ES SERIES SETS NEW ORACLE TPC-A RECORD OF 645 TPS AND 768 MIPS
Next Article:/C O R R E C T I O N -- U.S. SURGICAL/
Topics:


Related Articles
PAINEWEBBER TO REPURCHASE 3,879,317 SHARES OF COMMON STOCK FROM THE YASUDA MUTUAL LIFE INSURANCE FOLLOWING CONVERSION OF PREFERRED STOCK
PAINEWEBBER DECLARES REGULAR QUARTERLY CASH DIVIDEND
APACHE CORPORATION TO ISSUE $75,000,000 3.93 PERCENT CONVERTIBLE NOTES DUE 1997
PAINEWEBBER DECLARES REGULAR QUARTERLY CASH DIVIDEND; COMPLETES PREVIOUSLY ANNOUNCED REPURCHASE TRANSACTION
McDONALD'S ANNOUNCES $500 MILLION PREFERRED STOCK ISSUANCE AND COMMON STOCK BUYBACK
South Carolina Electric & Gas Company Sells $100 Million Of Preferred Stock
Fannie Mae Redemption.
Stepan Declares Quarterly Dividend and Approves Share Repurchase Authorization.
WesBanco Repurchases All Preferred Stock Issued Under the U.S. Department of the Treasury's Capital Purchase Program Established as Part of Troubled...

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