Baker Fentress Announces Updated Financial Information
CHICAGO--(BUSINESS WIRE)--Nov. 5, 1999--Baker, Fentress & Company
(NYSE symbol:BKF) announced today updated financial information
relating to its plan for distribution of assets.
Estimated Final Distributions
Baker Fentress's plan for distribution of assets calls for a
final distribution to shareholders to be made on or about January 7,
2000. The actual amount of the final distribution (and its precise
timing) will be determined by the Company's board of directors in
mid-December. Based upon the composition of the Company's assets at
October 31, 1999, estimates of the Company's income and expenses, and
estimates of the amount of additional gain or loss expected to be
realized when the Company's remaining portfolio securities are sold,
Baker Fentress currently estimates the final per share distribution
will be approximately as shown below:
*T
Estimate as
of
10/31/99
Ordinary income $ 1.41
Capital gain 1.76
Return of capital 9.07
Total $12.24
These amounts, and the allocation among the various sources, are
estimates. The actual amounts and sources will depend on the Company's
actual income, expenses and realized gains on securities sales.
John A. Levin & Co.
In a separate action, the board of directors of Baker Fentress on
November 4, 1999 completed its previously announced review of the
capital structure of its wholly-owned subsidiary John A. Levin & Co.,
Inc. (Levco) and its related companies. Effective December 31, 1999,
the debt owed by the Levco companies to Baker Fentress will be
contributed to capital and effectively converted to equity. The board
also authorized Levco to negotiate and enter into a $15 million
revolving line of credit to be used for general corporate purposes
after implementation of the plan for distribution of assets is
completed. No specific borrowings under that line of credit are
currently contemplated.
Effective November 5, 1999, the valuation of Baker Fentress's
investment in the Levco companies was reduced from $102 million to $92
million. The reduction reflects market valuations of publicly-traded
asset managers and other factors.
Levco is a New York City based investment advisor with assets
under management of $7.8 billion as of September 30, 1999. For the
nine months ended September 30, 1999, Levco had revenue of $37.8
million and operating income before intercompany interest expense and
taxes of $11.2 million. All Levco operating results are unaudited and
have not been adjusted to reflect changes that will result from
completion of Baker Fentress's plan for distribution of assets.
Composition of BKF Net Assets
As of October 31, 1999, and adjusted for the change in the Levco
valuation on November 5, 1999, the Company's total net assets were
comprised of the following:
*T
Market
Value at 10/31/99
(in millions)
U.S. Treasury bills, due 1/6/2000 $443.7
Cash and other cash equivalents 11.1
Public portfolio securities 27.4
Private placement securities 2.8
Levco companies (as of 11/5/99) 92.0
Other assets less liabilities (6.5)
Total net assets $570.5
Net asset value per share $14.62
CONTACT:
Baker, Fentress & Company
James P. Koeneman, 1-800-BKF-1891 |
