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Marvel is Now Debt Free with Cash in Excess of $150 Million Following Redemption of All Remaining Long-Term Debt NEW YORK --(Business Wire)-- June 16, 2004 -- Marvel Sees Cash Position Rising to Approximately $200 Million By Year-EndMarvel Enterprises, Inc., (NYSE:MVL) a global entertainment licensing company, announced that it has redeemed all of the outstanding $150,962,000 in principal amount of the Company's 12% Senior Notes due 2009. The redemption price was $106 for each $100 in principal amount of the Notes, plus six-months of accrued interest totaling approximately $9 million, for a total cash outlay to redeem the Notes of approximately $169 million. Marvel funded the Senior Notes redemption with cash on hand. Following the redemption, at June 15, 2004 Marvel had over $150 million in cash, certificates of deposit and commercial paper and no debt. As previously announced, Marvel expects to record approximately $16 million in aggregate interest expense in the second quarter of 2004, consisting of $4 million of net interest expense for the three-months ended June 30, 2004, the early redemption premium of roughly $9 million, and $3 million of previously unamortized deferred debt costs related to the Senior Notes. Marvel anticipates cash levels at December 31, 2004 to approximate $200 million, reflecting anticipated Federal income tax payments resulting from the recent exhaustion of Federal net operating loss (NOL) carry-forwards. Marvel commenced payment of cash Federal income taxes in the second quarter, which are expected to amount to $45-$55 million in fiscal 2004. "Redeeming our Senior Notes at the earliest allowable time has been a goal of Marvel since we emerged from bankruptcy and refocused our business on high-margin consumer and entertainment licensing initiatives," said Allen Lipson, Marvel's President and CEO. "Emerging as a debt-free company with a growing cash position is a testament to our business model and ability to leverage our popular brands to generate strong cash flows." About Marvel Enterprises With a library of over 4,700 proprietary characters, Marvel Enterprises, Inc. is one of the world's most prominent character-based entertainment companies. Marvel's operations are focused in four areas: entertainment (Marvel Studios), licensing, comic book publishing and toys (Toy Biz). Marvel facilitates the creation of entertainment projects, including feature films, DVD/home video, video games and television based on its characters and also licenses its characters for use in a wide range of consumer products and services including apparel, collectibles, snack foods and promotions. Marvel's characters and plot lines are created by its comic book division which continues to expand its leadership position in the U.S. and worldwide while also serving as an invaluable source of intellectual property. Except for any historical information that they contain, the statements in this news release regarding Marvel's plans are forward-looking statements that are subject to certain risks and uncertainties, including a decrease in the level of media exposure or popularity of Marvel's characters, financial difficulties of Marvel's major licensees, delays and cancellations of movies and television productions based on Marvel characters, poor performance of major movies based on Marvel characters, toy-production delays or shortfalls, continued concentration of toy retailers, toy inventory risk, significant appreciation of Chinese currency against other currencies and the imposition of quotas or tariffs on products manufactured in China. These and other risks and uncertainties are described in Marvel's filings with the Securities and Exchange Commission, including Marvel's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Marvel assumes no obligation to publicly update or revise any forward-looking statements. |
