Marvel announces debt free!
Press Release Source: Marvel Enterprises
Marvel is Now Debt Free with Cash in Excess of $150 Million Following Redemption of All Remaining Long-Term Debt
Wednesday June 16, 7:00 am ET
Marvel Sees Cash Position Rising to Approximately $200 Million By Year-End
NEW YORK--(BUSINESS WIRE)--June 16, 2004-- Marvel Enterprises, Inc., (NYSE:MVL - News) a global entertainment licensing company, announced that it has redeemed all of the outstanding $150,962,000 in principal amount of the Company's 12% Senior Notes due 2009. The redemption price was $106 for each $100 in principal amount of the Notes, plus six-months of accrued interest totaling approximately $9 million, for a total cash outlay to redeem the Notes of approximately $169 million. Marvel funded the Senior Notes redemption with cash on hand. Following the redemption, at June 15, 2004 Marvel had over $150 million in cash, certificates of deposit and commercial paper and no debt.
As previously announced, Marvel expects to record approximately $16 million in aggregate interest expense in the second quarter of 2004, consisting of $4 million of net interest expense for the three-months ended June 30, 2004, the early redemption premium of roughly $9 million, and $3 million of previously unamortized deferred debt costs related to the Senior Notes. Marvel anticipates cash levels at December 31, 2004 to approximate $200 million, reflecting anticipated Federal income tax payments resulting from the recent exhaustion of Federal net operating loss (NOL) carry-forwards. Marvel commenced payment of cash Federal income taxes in the second quarter, which are expected to amount to $45-$55 million in fiscal 2004.
"Redeeming our Senior Notes at the earliest allowable time has been a goal of Marvel since we emerged from bankruptcy and refocused our business on high-margin consumer and entertainment licensing initiatives," said Allen Lipson, Marvel's President and CEO. "Emerging as a debt-free company with a growing cash position is a testament to our business model and ability to leverage our popular brands to generate strong cash flows." |
