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EXHIBIT 99.3
(203) 661-1100
NEWS FROM UST 100 West Putnam Avenue
Greenwich, Connecticut 06830
for immediate release
Mark A. Rozelle FOR FURTHER INFORMATION CONTACT: Lisa B. Winjum
Investor Relations Media Relations
(203) 622-3520 (203) 622-3549
UST SIGNS COMMITMENTS FOR
POTENTIAL BONDING REQUIREMENTS
GREENWICH, CT, June 20, 2000 - - UST Inc. (NYSE: UST) today announced
that it has entered into commitment arrangements for financing to satisfy,
subject to certain terms and conditions of the commitments, any bonding
requirements that may be imposed by the court in the pending antitrust
litigation involving the Company's smokeless tobacco subsidiary. The facility
would generally have a term of three years, and depending on the amount of the
bond, could require some initial borrowing to be deposited into an escrow
account, along with additional quarterly escrow payments over the term.
The total cost of the facility over the three year period will be
dependent upon a number of factors, including the Company's debt rating, the
results of syndication efforts, and interest rates. The annual cost of the
facility is expected to average between two to three percent of the initial
bonding amount, before any offset for interest income earned on the additional
quarterly escrow payments. The Company anticipates that if it ultimately
prevails on appeal, some or all of the costs of these bonding requirements could
be recoverable from the plaintiff.
UST Chairman and Chief Executive Officer Vincent A. Gierer, Jr.,
stated: "We are pleased by the confidence in the Company shown by the
participation of the lenders and sureties in the financing arrangement,
particularly because it fulfills our objective of preserving the dividend. We
will continue with our efforts to have the damage award and the potential
bonding requirements reduced so that the Company's resources are not constrained
by having to post an onerous bond."
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UST, through its subsidiaries, is a leading producer and marketer of moist
smokeless tobacco products including Copenhagen, Copenhagen Long Cut, Skoal,
Skoal Long Cut, Skoal Bandits, Rooster and Red Seal. Other consumer products
marketed by UST subsidiaries include premium wines sold nationally through the
Chateau Ste. Michelle, Columbia Crest and Villa Mt. Eden wineries as well as
sparkling wine produced under the Domaine Ste. Michelle label and premium cigars
including Don Tomas, Don Tomas Special Edition, Astral and Habano Primero.
All statements, other than statements of historical facts, which address
activities, or actions that the Company expects or anticipates will or may occur
in the future, and other such matters are forward-looking statements. To take
advantage of the safe harbor provided by the Private Securities Litigation
Reform Act of 1995, the Company is identifying certain factors that could cause
actual results to differ materially from those expressed in any forward-looking
statements made by the Company.
Any one, or a combination, of these factors could materially affect the results
of the Company's operations. These factors include competitive pressures,
changes in consumer preferences, wholesaler ordering patterns, consumer
acceptance of new product introductions and other marketing initiatives,
uncertainties associated with ongoing and future litigation, legal and
regulatory initiatives (including those described under Items 1 and 3 of the
Company's Annual Report on Form 10-K and Form 8-K), and conditions in the
capital markets. Forward-looking statements made by the Company are based on
knowledge of its business and the environment in which it operates, but because
of the factors listed above, as well as other factors beyond the control of the
Company, actual results may differ from those in the forward-looking statements.
