STANLEYTOWN, Va., April 25 /PRNewswire-FirstCall/ -- Stanley Furniture
Company, Inc. (Nasdaq: STLY) announced today that its Board of Directors has
approved the early repayment of a loan extended in 2000 in connection with
stock option exercises. Chief Executive Officer Albert L. Prillaman plans to
surrender common shares in payment of the outstanding loan amount and sell up
to 100,000 common shares for estate planning purposes and to provide cash for
tax liabilities related to the loan repayment.
Repayment of the outstanding loan with common shares is expected to be
accretive to the company's earnings per share. In addition, the sale of
shares by Mr. Prillaman will increase the public float of the company's common
shares.
Following the loan repayment, Mr. Prillaman will own approximately 360,000
shares (or 5.3% of the outstanding common shares), assuming repayment of the
loan on April 25, 2002 by surrender of common shares and the sale of 100,000
common shares. In addition, Mr. Prillaman holds options to purchase an
additional 300,000 shares (or 4.1% of the outstanding shares) of which 120,000
shares have vested and the remainder will vest in increments through 2005.
The loan, made in April 2000, is in an aggregate principal amount of
$2,584,983, bears interest at 6.71% per annum, provides a five-year term with
a balloon payment of principal and interest at the end of the term and is
secured by a pledge of 330,420 common shares.
The Company will release 100,000 shares of pledged stock to Mr. Prillaman
which he may sell for a period of 120 days following their release. Mr.
Prillaman will repay the loan in cash or by surrender of common shares if he
sells all those shares. Common shares surrendered to repay the loan will be
valued at the lesser of (i) the closing price of the common shares on the
trading day before their surrender or (ii) the average of the closing prices
of the common shares on the 20 trading days immediately before their
surrender. Mr. Prillaman will repledge the released shares if he does not
sell any of those shares. If some of those shares are sold, he will provide
additional collateral or reduce the outstanding loan amount so that the loan
is secured by property valued at no less than 125% of the then outstanding
loan amount as of the date 150 days after the release of the pledged shares.
Established in 1924, Stanley Furniture Company, Inc. is a leading
manufacturer of wood furniture targeted at the upper-medium price range of the
residential market. Manufacturing facilities are located in Stanleytown and
Martinsville, VA and Robbinsville and Lexington, NC.
SOURCE Stanley Furniture Company, Inc.
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Related links:
http://www.stanleyfurniture.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/117677.html
CONTACT:
Douglas I. Payne, Executive V.P., Finance and
Administration, +1-276-627-2157 or dpayne@stanleyfurniture.com;
or Robin W. Campbell, Manager, Advertising and Marketing
Services, +1-276-627-2245 or rcampbell@stanleyfurniture.com; both
of Stanley Furniture Company, Inc.
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