TRANSTECHNOLOGY CORP. ANNOUNCES COMPLETION OF SALE
TRANSTECHNOLOGY CORP. ANNOUNCES COMPLETION OF SALE UNION, N.J., March 30 /PRNewswire/ -- TransTechnology Corp.
(NYSE: TT) announced today that it had completed the sale of its Lundy Financial Systems business to Recognition Equipment Inc. (NYSE: REC) for $37.8 million. $35.3 million of the purchase price was received in cash, of which $5.1 million was placed in escrow pending the collection of accounts receivable, the payment of final operating expenses for the business, and the completion of the sale of the real estate. This transaction, allowing for resolution of the escrowed items, will contribute a pretax gain of approximately $5.6 million in the fourth fiscal quarter ending March 31, 1992.
The company also announced that it had today retired $24 million of its long-term debt which carried a fixed interest rate of 9.625 percent and that it intends to retire the remaining $8 million of that debt in the first quarter of fiscal year 1993. As a result of the early retirement of this debt, the company will recognize a fourth quarter pretax charge of $2.2 million arising from the yield maintenance provisions of that debt. The company expects the savings from lower future interest costs to provide long-term savings in excess of the early payment penalty. The company's previously announced divestiture of its textile machinery, calendared elastomer, and weather instrument divisions are proceeding as anticipated with definitive agreements expected to be signed in the next few weeks and with completion of the transactions expected in April 1992. The company is expected to incur a combined fourth quarter pretax loss of $1,700,000 as a result of these transactions. The company also announced that the relocation of its corporate headquarters from Los Angeles to Union, had been completed, and that all corporate activities are now carried out in New Jersey. TransTechnology Corp. is a manufacturer of industrial and aerospace products. -0- 3/30/92 /CONTACT: Michael J. Berthelot, vice chairman-investor relations of TransTechnology, 908-964-5666/ (TT REC) CO: TransTechnology Corp.; Recognition Equipment Inc. ST: New Jersey IN: ARO SU: TNM
AL-CH -- LA021 -- 3057 03/30/92 16:33 EST
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|Date:||Mar 30, 1992|
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