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EXHIBIT 99.1
[LETTERHEAD WAXMAN]
NEWS RELEASE
WAXMAN INDUSTRIES, INC. ANNOUNCES
SALE OF INTEREST IN BARNETT
Comprehensive Financial Restructuring Plan Proceeding
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Bedford Heights, Ohio -- October 2, 2000 - Waxman Industries, Inc. (OTCBB
-WAXX), a holding company for businesses supplying specialty plumbing and other
products to the U.S. repair and remodeling market, reported it completed the
sale of its remaining interest in Barnett Inc. (NASDAQ - BNTT), raising
approximately $92.5 million, which is being utilized for the comprehensive
financial restructuring of the Company, including the reduction of debt. Earlier
this month, the Company sold 160,723 of its Barnett shares to Barnett, raising
$2.0 million.
The sale proceeds have been used to reduce the Company's bank facility by
approximately $11.0 million, to pay taxes, to redeem the remaining $35.9 million
of Waxman USA's 11 1/8% Senior Notes (the "Senior Notes") and to pay interest
due on the Waxman Industries' 12 3/4% Deferred Coupon Notes (the "Deferred
Coupon Notes"). The remaining net proceeds have been placed in a segregated
account, which will be used to satisfy all of the $99.3 million of Deferred
Coupon Notes. The completion of the Barnett Stock sale was an integral element
of the Debt Reduction Agreement entered into in December 1999 by the Company and
an Ad Hoc Committee representing the holders of approximately 87% of its
Deferred Coupon Notes and approximately 65% of the Senior Notes.
In order to more effectively complete the restructuring plan, and to cause the
remaining Deferred Coupon Note holders to accept the same discount as the
committee members, Waxman Industries Inc. will file a pre-negotiated plan of
reorganization with the Bankruptcy Court. This Plan was jointly developed and
will be jointly sponsored by the committee of Deferred Coupon Note holders, the
only impaired class of creditors. The Company believes that the Joint Plan
should proceed quickly because the holders of approximately 97% of the Deferred
Coupon Notes have voted in favor of the Joint Plan. The Company expects to
complete its Plan in calendar 2000.
The restructuring plan does not involve any of the Company's operating
subsidiaries, including Waxman Consumer Products Group, Medal of Pennsylvania,
Inc., WAMI Sales Inc., or the operations in Taiwan and China (TWI and CWI). The
operating subsidiaries, which have their own bank credit facility, will continue
to pay all of their trade creditors, employees and other liabilities under
normal trade conditions.
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Statements on this Press Release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 that
are based on the beliefs of the Company and its management. When used in this
document, the words "anticipate," "believe,"
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"continue," "estimate," "expect," "intend," "may," "should," and similar
expressions are intended to identify forward-looking statements. Such statements
reflect the current view of the Company with respect to future events and are
subject to certain risks, uncertainties and assumptions, including, but not
limited to, the risk that the Company may not be able to implement its
deleveraging strategy, risks associated with currently unforeseen competitive
pressures and risks affecting the Company's industry, such as decreased consumer
spending, customer concentration issues and the effects of general economic
conditions. In addition, the Company's business, operations and financial
condition are subject to the risks, uncertainties and assumptions which are
described in the Company's reports and statements filed from time to time with
the Securities and Exchange Commission. Should one or more of those risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described herein.
