Reinhold Industries Announces Closing of Sale of NP Aerospace; Declares $6.00 Special Dividend; Discontinues Quarterly Dividend
November 21 2005 - 4:18PM
PR Newswire (US)
SANTA FE SPRINGS, Calif., Nov. 21 /PRNewswire-FirstCall/ --
Reinhold Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs,
California announced that the sale of NP Aerospace to The Carlyle
Group closed today. The total purchase price of $53.4 million
provides Reinhold approximately $40 million of net proceeds after
taxes and expenses. Reinhold will use these net proceeds to pay off
all of its outstanding indebtedness of approximately $25.7 million.
Reinhold also declared today a special dividend of $6.00 per share
to all shareholders of record on December 16, 2005 payable on
January 3, 2006. The special dividend will return approximately
$19.6 million to Reinhold shareholders and will be funded by (1)
the remaining net proceeds from the sale of NP Aerospace, and (2) a
new credit facility with LaSalle Bank. The new credit facility will
consist of a new term loan of $5.5 million payable over four years
and a new revolving credit facility of up to $4.5 million. Reinhold
expects to have more than $4 million in availability under this new
revolver after paying the special dividend. Reinhold also announced
today that it will discontinue its previous policy of paying
regular quarterly dividends. As previously announced, Reinhold will
pay a quarterly dividend of $0.50 per share to shareholders of
record as of December 2, 2005 payable on December 16, 2005. This
will be Reinhold's last quarterly dividend under its now
discontinued policy. "Over the last two years, Reinhold has
returned significant value to its shareholders. Including the
special $6.00 per share dividend declared today, Reinhold will have
paid $20.75 per share in aggregate dividends since September 2004,"
said Ralph R. Whitney, Jr., Chairman of the Board. Michael T.
Furry, Reinhold's President and CEO commented: "Management will now
focus on reducing operating expenses and managing the Company's
remaining domestic businesses. The cash flow generated from these
businesses will be used primarily to reduce the Company's
indebtedness." William Blair & Company acted as the financial
advisor to Reinhold in connection with the sale of NP Aerospace.
Reinhold Industries, Inc. is a manufacturer of advanced custom
composite components and sheet molding compounds for a variety of
applications in the United States. SPECIAL NOTE REGARDING
FORWARD-LOOKING STATEMENTS To the extent the Company makes certain
"forward-looking statements" in this press release, such as
statements about future plans, goals and other events which have
not yet occurred, such statements are intended to qualify for the
safe harbors from liability provided by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can
generally be identified because they include words such as the
Company "believes," "anticipates," "expects" or words of similar
import. These forward-looking statements involve risks and
uncertainties and the actual results could differ materially from
those discussed in the forward-looking statements. These risks and
uncertainties include, without limitation, risks associated with
levels of U.S. and foreign military spending and the financial
condition of the airline industry. You should consider these risks
and factors and the impact they may have when you evaluate these
forward-looking statements. These statements are based only on the
Company's knowledge and expectations on the date of this press
release. The Company disclaims any duty to update these statements
or other information in this press release based on future events
or circumstances. DATASOURCE: Reinhold Industries, Inc. CONTACT:
Wanda Morrison of Reinhold Industries, Inc., +1-562-944-3281
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