Of course, we will maintain our specialty chemical segment in Utah as currently configured. We’ve spent well over a year finding the right buyer for this business. Moog, in our estimation, will be an excellent parent for this business as their aerospace business is of a significant size and is expanding both in United States and Europe through acquisition and organically. We expect the transaction to close prior to the end of our fiscal year 2012.
We anticipate net proceeds, which is after expenses and taxes, to range from $36 million to $38 million. Of this amount, $4 million will be held in an escrow account for a period of 15 months. The obvious immediate financial impact to the company will be to strengthen our balance sheet with net debt being reduced at closing. Between now and closing, we will be examining our capital structure and how best we can use this influx of cash.
One obvious consideration is to use the deal proceeds to enable a recapitalization by retiring the notes and replacing them with a lower interest rate instrument at a much lower total debt. In effect, we reduce total debt and total interest commitments. Of course, we would want to maintain flexibility in our structure to allow for growth of the business, especially in the pharmaceuticals area.
Thank you for joining our call. We are now happy to answer any questions you may have. Jeff?Question-and-Answer SessionOperator(Operator Instructions) And our first question comes from the line of [Crystal Lynn] with American Pacific. Please proceed.Unidentified SpeakerHi, Joe, nice to speak with you again. Thank you for that clarity on one consideration of the proceeds is to reduce debt. You mentioned one consideration, do you have other considerations and how likely is that how much would you consider to reduce the debt?Read the rest of this transcript for free on seekingalpha.com
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