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ROHR DEFERS BOND OFFERING

 CHULA VISTA, Calif., Sept. 9 /PRNewswire/ -- Rohr (NYSE: RHR) announced today that it had elected to defer its proposed public offering of $125 million of Senior Subordinated Notes from the market.
 Addressing the decision, James J. Kerley -- chairman of the board of directors and acting chief financial officer of the company -- said, "The company, after conferring with the managers of the issue -- Dillon, Read & Co. Inc., and Citicorp Securities Inc. -- reached the conclusion that it would be imprudent to pay the interest rates that would be required at the present time to sell such an issue in the public market. Over the past several days the demand for high-yield coupon bonds has softened as the in-flow of funds to the institutions that generally purchase such securities has been reduced and the number of such issues that have and will be coming to the market over the next several months has increased significantly. In this environment, the company and its underwriters deem it wise to defer a public debt offering at this time."
 Robert H. Rau -- president and chief executive officer of Rohr -- observed that the company's longer-term desire to more adequately match its financing to its long-term financing commitments has not changed. Commenting further, Rau said, "During our 1993 fiscal year, the company generated operating cash flow of approximately $75-$80 million. We anticipate that our operations will continue to generate positive cash flows. With existing financial arrangements, the company has adequate liquidity to meet its current needs. As disclosed in the Registration Statement filed with the Securities and Exchange Commission, the company's revolving credit agreement and senior note agreements require it to issue at least $100 million of subordinated debt on or prior to Aug. 1, 1994. The company expects to meet this requirement and its deferral of the public offering allows it to arrange more permanent financing in a more favorable environment."
 Both officials pointed out that the Securities and Exchange Commission had advised the company that it was prepared to declare Rohr's Registration Statement effective. Both men pointed out that it is the intention of the company to arrange for longer-term financing at some point in the relatively near-term future.
 Rohr, which reported preliminary sales of $1.18 billion for its fiscal year ended July 31, 1993, designs, integrates, manufactures and supports aircraft engine nacelle systems and components for commercial, military and business aircraft. Rohr, headquartered in Chula Vista has facilities in the United States and Europe.
 -0- 9/9/93
 /CONTACT: Bob Rau, 619-691-2057, or Jim Kerley, 619-691-2102/
 (RHR)


CO: Rohr ST: California IN: ARO SU: OFR

EH-JB -- SD005 -- 0519 09/09/93 17:25 EDT
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Publication:PR Newswire
Date:Sep 9, 1993
Words:440
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