Steel Partners Holdings Declares Regular Quarterly Distribution on Its Series A Preferred Units
May 22 2020 - 4:30PM
Business Wire
Steel Partners Holdings L.P. (NYSE: SPLP) (the "Company" or
"SPLP"), a diversified global holding company, today announced that
the board of directors of its general partner has declared a
regular quarterly distribution equal to $0.375 per unit, payable
June 15, 2020, to unitholders of record as of June 1, 2020, on its
6% Series A Preferred Units, no par value ("Series A
Preferred").
In accordance with the Company's Eighth Amended and Restated
Agreement of Limited Partnership, such distributions will be made
in kind, such that holders of Series A Preferred will receive
additional units equal to the product of units held and the $0.375
per unit quarterly dividend divided by the Series A Preferred
liquidation preference of $25.00 per unit. No fraction of a Series
A Preferred will be issued by virtue of the quarterly dividend, but
in lieu thereof each preferred unitholder will be paid an amount of
cash (rounded to the nearest whole cent), without interest, equal
to the product of (i) such fraction, multiplied by (ii) the $25.00
Series A liquidation preference.
The board of directors elected to make the quarterly
distribution in kind as part of its previously announced
comprehensive precautionary approach to increase the Company's cash
position and maximize its financial flexibility in light of the
current volatility in the global markets resulting from the
COVID-19 outbreak.
"The COVID-19 pandemic has elevated global levels of
uncertainty. I have confidence that our business will successfully
emerge from this situation, but out of an abundance of caution, we
have decided to make this quarterly dividend in kind," said
Executive Chairman Warren Lichtenstein.
Any future determination to declare distributions on its units
of Series A Preferred, and any determination to pay such
distributions in cash or in kind, or a combination thereof, will
remain at the discretion of the board of directors of the Company's
general partner and will be dependent upon a number of factors,
including the Company's results of operations, cash flows,
financial position, and capital requirements, among others.
About Steel Partners Holdings L.P.
Steel Partners Holdings L.P. (www.steelpartners.com) is a
diversified global holding company that owns and operates
businesses and has significant interests in leading companies in
various industries, including diversified industrial products,
energy, defense, supply chain management and logistics, direct
marketing, banking and youth sports.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that reflect SPLP's current expectations and projections
about its future results, performance, prospects, and
opportunities. SPLP identifies these forward looking statements by
using words such as "may," "should," "expect," "hope,"
"anticipate," "believe," "intend," "plan," "estimate," and similar
expressions. These forward-looking statements are based on
information currently available to the Company and are subject to
risks, uncertainties, and other factors that could cause its actual
results, performance, prospects, or opportunities in 2020 and
beyond to differ materially from those expressed in, or implied by,
these forward-looking statements. These factors include, without
limitation, the impact of COVID-19 on business activity generally
and on the Company's operations including whether facilities
considered to be essential retain that designation, the continued
decline of crude oil prices, customers' acceptance of SPLP's new
and existing products, SPLP's ability to deploy its capital in a
manner that maximizes unitholder value, the ability to consolidate
and manage SPLP's newly acquired businesses, the potential
fluctuation in the Company's operating results, the Company's
ongoing cash flow requirements for defined benefit pension plans,
the cost of compliance with extensive federal and state regulatory
requirements and any potential liability thereunder, the Company's
need for additional financing and the terms and conditions of any
financing that is consummated, the ability to identify suitable
acquisition candidates or investment opportunities for SPLP's core
businesses, the impact of losses in the Company's investment
portfolio, the effect of rising interest rates and the phase-out of
LIBOR, SPLP's ability to protect the Company's intellectual
property rights, the Company's ability to manage risks inherent to
conducting business internationally, the outcome of litigation or
other legal proceedings in which SPLP is involved from time to
time, a significant disruption in, or breach in security of, SPLP's
technology systems, labor disputes and the ability to recruit and
retain experienced personnel, general economic conditions,
fluctuations in demand for SPLP's products and services, the
inability to realize the benefits of net operating losses of SPLP's
affiliates and subsidiaries, the possible volatility of SPLP's
common or preferred unit trading prices, and other risks detailed
from time to time in filings SPLP makes with the SEC. These
statements involve significant risks and uncertainties, and no
assurance can be given that the actual results will be consistent
with these forward-looking statements. Investors should read
carefully the factors described in the "Risk Factors" section of
the Company's filings with the Securities and Exchange Commission
("SEC"), including the Company's Form 10-K for the year ended
December 31, 2019 and Form 10-Q for the quarterly period ended
March 31, 2020, for information regarding risk factors that could
affect the Company's results. Any forward-looking statement made in
this press release speaks only as of the date hereof. Except as
otherwise required by law, SPLP undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, changed
circumstances, or any other reason.
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version on businesswire.com: https://www.businesswire.com/news/home/20200522005444/en/
Jennifer Golembeske 212 520-2300
jgolembeske@steelpartners.com
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