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
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV