Hillman Group Capital defers cash distributions on trust preferreds

By Susanna Moon

Chicago, Dec. 22 - Hillman Cos., Inc. will defer the payment of cash distributions to holders of Hillman Group Capital Trust's trust preferred securities beginning with the January distribution and for up to six months.

The company's board of directors decided to defer the distributions in order to retain capital, Max W. Hillman, chief executive officer of Hillman Cos., said in a press release.

Hillman said deferring payment will help preserve cash and maintain the company's compliance with the financial covenants contained in its senior credit and subordinated debt agreements.

Under the trust preferreds, the company may defer distribution payments for up to 60 months.

The full amount of all distributions will accrue during the deferral period and will be payable at the end of the period.

The company expects to accrue $0.241667 per share, which represents the amount that would otherwise be paid in the January distribution.

Hillman Cos. is a Cincinnati-based distributor of small hardware merchandise.

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