QUANEX CONVERTIBLE EXCHANGEABLE PREFERRED STOCK IS PRICED AND GOES 'EFFECTIVE'
QUANEX CONVERTIBLE EXCHANGEABLE PREFERRED STOCK IS PRICED AND GOES 'EFFECTIVE' HOUSTON, May 13 /PRNewswire/ -- Quanex Corporation (NYSE: NX), a Fortune 500 Company and a leading manufacturer of specialized metals, today announced that the Securities and Exchange Commission has declared "effective" its registration of a public offering of 6.88 percent Cumulative Convertible Exchangeable Preferred Stock (preferred stock), convertible into shares of common stock of the company at $31.50 per common share (subject to adjustments in certain instances). The preferred stock will also be exchangeable, at the company's option on any dividend payment date commencing June 30, 1995, for 6.88 percent convertible subordinated debentures due 2007. The proceeds of the offering will be used to support the company's planned growth, including capital expenditures of approximately $52 million for Phase II of MacSteel's capital improvement program, and for general corporate purposes. The new issue has been priced and consists of 3 million shares of $25 liquidation preference 6.88 percent depositary convertible exchangeable preferred shares with an aggregate liquidation preference of $75 million, each representing 1/10th share of the 6.88 percent cumulative convertible exchangeable preferred stock. The new issue will be traded on the New York Stock Exchange under the symbol NX Pr on a when-issued basis. The company has entered into an underwriting agreement with Donaldson, Lufkin & Jenrette Securities Corporation; Bear Stearns & Co., Inc. and C.J. Lawrence Inc. for the sale of the Depositary Shares. Such agreement is subject to customary conditions and the company anticipates closing the transaction on or about May 20, 1992. CORPORATE PROFILE Quanex is a technological leader in the manufacture of steel, aluminum and titanium specialty products for transportation, capital equipment, home building and remodeling and energy processing markets. Latest 12 Months (through first quarter ended Jan. 31, 1992) Data: sales; $571.3 million, operating income; $31.1 million, net income; $10.9 million, cash from operations; $45.1 million, primary earnings per share; $.94, quarterly dividend rate; $.13 per share, book value per share; $13.12, return on common equity; 7.1 percent, common stock price range (latest 52 week High/Low) $29-7/8 and $14-1/8. -0- 5/13/92 /CONTACT: W.F. Cleary or C.A. Meador of Quanex, 713-961-4600/ (NX) CO: Quanex Corporation ST: Texas IN: MNG SU:
KD -- NY093 -- 9844 05/13/92 15:35 EDT
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|Date:||May 13, 1992|
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