JACKSONVILLE, Fla.,
Jan. 21, 2011 /PRNewswire/ --
Fidelity National Financial, Inc. (NYSE: FNF), a leading provider
of title insurance, mortgage services, specialty insurance and
information services, today announced the completion of the Remy
International ("Remy") Common Stock Rights Offering ("the
Offering").
For each share previously owned, the Offering provided all Remy
common shareholders the right to purchase two shares of additional
Remy common stock at a price of $11.00 per share. Eligible Remy
shareholders exercised rights for approximately 19.7 million shares
of common stock resulting in proceeds of approximately $217 million, including the tender of
approximately $93.5 million worth of
Remy preferred stock. At the end of the Offering, Remy will
have approximately 31.6 million shares of common stock outstanding.
FNF fully participated in the offering, using a combination of
tendered preferred stock and cash to purchase an additional 9.9
million shares of Remy common stock for a total cost of
$108.5 million. FNF now owns
14.8 million shares of Remy common stock, representing a 47%
ownership position.
Following the completion of the Offering and the scheduled
redemption of Remy's remaining preferred stock on January 31, 2011, Remy's total debt plus
preferred stock will be reduced by $211
million from $535 million to $324
million. In addition, Remy's annual fixed charges,
including interest expense and preferred stock dividends, will be
reduced by approximately $40 million
on an annual run-rate basis from approximately $66 million to approximately $26 million.
"We are pleased with the success of the Remy Offering," said FNF
Chairman William P. Foley, II.
"Remy produced significantly improved financial results in
2010 and we are excited about the company's business outlook,
simplified capital structure and significantly reduced fixed charge
obligations resulting from the Offering and the debt refinancing
completed last December. We can now turn our focus to a
number of strategic alternatives that could generate meaningful
value for FNF shareholders during 2011."
About FNF
Fidelity National Financial, Inc. (NYSE: FNF), is a leading
provider of title insurance, mortgage services, specialty insurance
and information services. FNF is the nation's largest title
insurance company through its title insurance underwriters -
Fidelity National Title, Chicago Title, Commonwealth Land Title and
Alamo Title - that collectively issue more title insurance policies
than any other title company in the
United States. FNF also provides flood insurance,
personal lines insurance and home warranty insurance through its
specialty insurance business and is a leading provider of global
human resources, payroll, benefits and payment solutions through a
minority-owned subsidiary, Ceridian Corporation. More
information about FNF can be found at www.fnf.com.
Forward Looking Statements
This press release contains forward-looking statements that
involve a number of risks and uncertainties. Statements that are
not historical facts, including statements about our beliefs and
expectations, are forward-looking statements. Forward-looking
statements are based on management's beliefs, as well as
assumptions made by, and information currently available to,
management. Because such statements are based on expectations as to
future economic performance and are not statements of fact, actual
results may differ materially from those projected. We undertake no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise. The
risks and uncertainties which forward-looking statements are
subject to include, but are not limited to: changes in general
economic, business and political conditions, including changes in
the financial markets; adverse changes in the level of real estate
activity, which may be caused by, among other things, high or
increasing interest rates, a limited supply of mortgage funding or
a weak U. S. economy; our potential inability to find suitable
acquisition candidates, acquisitions in lines of business that will
not necessarily be limited to our traditional areas of focus, or
difficulties in integrating acquisitions; our dependence on
operating subsidiaries as a source of cash flow; significant
competition that our operating subsidiaries face; compliance with
extensive government regulation of our operating subsidiaries; and
other risks detailed in the "Statement Regarding Forward-Looking
Information," "Risk Factors" and other sections of the Company's
Form 10-K and other filings with the Securities and Exchange
Commission.
SOURCE Fidelity National Financial, Inc.