Funding will have no impact on PPG’s stated cash-deployment targets
PITTSBURGH--(BUSINESS WIRE)--Jun. 10, 2016--
PPG (NYSE:PPG) today announced that the company has fully funded its
portion of the Pittsburgh Corning Asbestos Trust that was established by
the U.S. Bankruptcy Court for the Western District of Pennsylvania in
May 2016.
PPG fulfilled initial funding requirements June 9, based on agreed-upon
terms of the trust settlement. The obligations include cash funding of
approximately $500 million (pretax) and the transfer of about 2.78
million shares of PPG common stock, which were hedged at approximately
$22 per share (incremental cash payment of about $60 million). These
shares were already included in the company’s outstanding diluted share
count. Lastly, PPG relinquished any claim to its equity interest in
Pittsburgh Corning and conveyed to the Trust its ownership interest in
Pittsburgh Corning’s European subsidiary.
In addition to the initial funding obligation, the company exercised an
option to prepay all future cash obligations, totaling a net of
approximately $250 million (pretax), including a 5.5 percent prepayment
discount.
All payments were applied against a previously established PPG reserve
for the total asbestos-trust obligation. The company utilized cash on
hand for the payments, and this funding will have no impact on PPG’s
previously stated cash-deployment targets.
These actions complete PPG’s funding obligations to the Pittsburgh
Corning Asbestos Trust, and PPG has no ongoing responsibility for the
Trust’s operation or management.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the paints,
coatings and materials that our customers have trusted for more than 130
years. Through dedication and creativity, we solve our customers’
biggest challenges, collaborating closely to find the right path
forward. With headquarters in Pittsburgh, we operate and innovate in
more than 70 countries and reported net sales of $15.3 billion in 2015.
We serve customers in construction, consumer products, industrial and
transportation markets and aftermarkets. To learn more, visit www.ppg.com.
Forward-Looking Statements
Statements in this news release relating to matters that are not
historical facts are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 reflecting the
company’s current view with respect to future events or objectives and
financial or operational performance or results. The forward-looking
statements contained herein include statements relating to PPG
Industries’ future asbestos liabilities and cash deployment targets.
Actual events may differ materially from current expectations and are
subject to a number of risks and uncertainties, including the risks and
uncertainties discussed in PPG Industries’ periodic reports on Form 10-K
and Form 10-Q and its current reports on Form 8-K filed with the
Securities and Exchange Commission. Forward-looking statements speak
only as of the date of their initial issuance, and PPG Industries does
not undertake any obligation to update or revise publicly any
forward-looking statement, whether as a result of new information,
future events or otherwise.
We protect and beautify the world is a trademark and the PPG
Logo is a registered trademark of PPG Industries Ohio, Inc.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160610005372/en/
Source: PPG
PPG Media Contact:
Mark Silvey, +1-412-434-3046
Corporate
Communications
silvey@ppg.com
or
PPG
Investor Contact:
Scott Minder, +1-412-434-3466
Investor
Relations
sminder@ppg.com