Furniture Brands Contributes Shares To Pension Plan

Posted by MCC on May 31st, 2010 at 07:00am

In a private placement, Furniture Brands International contributed 2.3 million common stock shares to the company’s pension plan. The shares are valued at over $15.6 million and were contributed by the company in consideration of the reduction in future funding obligations.

According to a regulatory filing, the company’s shares were valued by an independent firm for the purposes of the contribution at $6.79 per share. That valuation includes a discount from the price due to several things including the temporary restrictions placed on trading shares. The company will be filing a registration statement and has chosen Evercore Trust Co. NA as their independent investment manager.

Furniture Brands International said that it has previously contributed around $5 million this year alone. The majority of the plan contributions for 2010 are eligible for tax loss carryback treatment. And, the company anticipates an extra cash tax refund of around $7 million this year.

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