The May Department Stores Company Announces Suspension of Stock Repurchase Programs and Early Redemption of $200 Million of Debe
15 July 2004 - 2:21AM
PR Newswire (US)
The May Department Stores Company Announces Suspension of Stock
Repurchase Programs and Early Redemption of $200 Million of
Debentures ST. LOUIS, July 14 /PRNewswire-FirstCall/ -- The May
Department Stores Company (NYSE:MAY) announced today that, in
anticipation of closing the acquisition of Marshall Field's, the
company has indefinitely suspended its $500 million special common
stock share repurchase program, which was announced in February.
Prior to the suspension, May repurchased $18 million of common
stock under this program. May also has suspended its common stock
repurchase program in connection with its employee benefit plans,
which also was announced in February. The previously announced
Marshall Field's acquisition -- expected to close by the end of the
company's fiscal second quarter -- includes all assets that
comprise Marshall Field's, including 62 stores, inventory, customer
receivables, and distribution centers in Chicago, Detroit and
Minneapolis. May also is acquiring the real estate associated with
the nine Mervyn's store locations in the Twin Cities area. May has
priced a private placement offering of $2.2 billion of securities
in the long-term public debt markets to partially fund the
acquisition. The offering will result in additional interest
expense of $4 million, or 1 cent per share, in May's fiscal second
quarter. Second quarter results will be reported August 10. The
remaining portion of the purchase price will be funded with cash
and short-term debt. In addition, May also has notified bondholders
that it will be redeeming on August 1, 2004, $200 million of 8-3/8%
debentures due in 2024. The early redemption will result in a
charge of $10 million, or 2 cents per share, in the company's
fiscal third quarter. The May Department Stores Company currently
operates 438 department stores under the names of Lord &
Taylor, Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, L.S.
Ayres, Meier & Frank, Robinsons-May, Strawbridge's, and The
Jones Store, as well as 219 David's Bridal stores, 453 After Hours
Formalwear stores, and 10 Priscilla of Boston stores in its Bridal
Group. May operates in 46 states, the District of Columbia, and
Puerto Rico. This announcement may contain, in addition to
historical information, certain forward-looking statements that
involve risks and uncertainties. Actual results could differ
materially from those currently anticipated as a result of a number
of factors, including risks and uncertainties discussed in The May
Department Stores Company's filings with the Securities and
Exchange Commission. Those factors include, among other things, the
competitive environment in the retailing industry in general and in
the specific market areas in which May and its divisions operate,
including consumer confidence, changes in discretionary consumer
spending, changes in costs of goods and services and economic
conditions in general, unseasonable weather and those risks
generally associated with the integration of Marshall Field's with
May. There can be no assurance that the acquisition will close, as
to the timing of the closing, that the integration will be
successful or without unanticipated costs or that anticipated
synergies or other benefits will be realized. May assumes no
obligation to update any forward-looking statements as a result of
new information or future events or developments. For more
information, contact Sharon Bateman at (314) 342-6494. DATASOURCE:
The May Department Stores Company CONTACT: Sharon Bateman of The
May Department Stores Company, +1-314-342-6494
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