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Exhibit 99.1
THE MIDDLEBY
CORPORATION REPORTS
PREPAYMENT OF NOTE OBLIGATION
Elgin, IL, August 17, 2000
— The Middleby Corporation (NASDAQ: MIDD), a global supplier of equipment
to the foodservice industry, today reported that it has prepaid in full an
unsecured senior note obligation of $12.5 million. In addition, the Company
repurchased the associated warrant that gave the noteholder the right to
purchase 250,000 shares of common stock of the Company at an exercise price of
$3 per share.
Net cash used to retire the
remaining note obligation and the warrant totaled $13.9 million and included
$12.5 million for principal repayment, $0.1 million for accrued interest, $0.9
million for retirement of the warrant and $0.4 million for the prepayment of the
debt. The Company paid this amount out of its cash balances on hand.
Commenting on the
Company’s prepayment, David P. Riley, President and Chief Executive
Officer, said, “The early payoff of this debt will benefit the
Company’s financial performance in the future. We will recognize $0.2
million of after-tax cost associated with the prepayment as an expense in our
fiscal third quarter but we will also see lower interest expense going forward.
Additionally, the liquidation of the warrant eliminates the dilutive effect of
those shares.”
Statements in this press
release or otherwise attributable to the Company regarding the Company’s
business which are not historical fact are forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The Company cautions investors that such statements are
estimates of future performance and are highly dependent upon a variety of
important factors that could cause actual results to differ materially from such
statements. Such factors include, but are not limited to, quarterly variations
in operating results; dependence on key customers; international exposure;
foreign exchange and political risks affecting international sales; changing
market conditions; the impact of competitive products and pricing; the timely
development and market acceptance of the Company’s products; the
availability and cost of raw materials; and other risks detailed herein and from
time-to-time in the Company’s SEC filings, including those discussed under
the heading entitled “Risk Factors” in the Company’s Registration
Statement on Form S-2 (No. 333-35397) filed with the Securities and Exchange
Commission.
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