Milacron to repay some bank debt with proceeds from rights offering

By Sara Rosenberg

New York, March 2 - Milacron Inc. plans to pay down bank debt and add to its cash position using all $24.2 million net proceeds from a recently completed rights offering, according to a company news release.

"It had, until recently, been the company's intent to redeem a portion of our series B preferred stock with proceeds from the rights offering," said Ronald D. Brown, chairman, president and chief executive officer, in the release. "But after careful study of various alternatives, including evaluation by a special, recently formed capitalization committee of the board, we have concluded that using the proceeds to pay down debt and increase our liquidity is in the best interest of all our stakeholders.

"We believe added financial flexibility is important, particularly given the recovery in several of our markets and the corresponding need for additional working capital."

Milacron is a Cincinnati-based supplier of plastics-processing technologies and industrial fluids.

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