Furniture Brands Contributes 4.1 Million Shares to Pension Plan

September 2, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on September 3, 2010 Furniture Brands International  (NYSE: FBN) has made a contribution of about 4.1 million shares of its common stock to the company's pension plan.

The shares were contributed in a private placement transaction and in consideration for the reduction in future funding obligations to the plan. Following the contribution, the company has about 55 million shares of common stock issued and outstanding and about 6.4 million shares are held in the pension plan.

During the first six months of 2010, Furniture Brands had contributed a total of $22.2 million in stock and cash to the plan. At June 30, the company estimated it would be required to contribute about $45 million to the plan by Sept. 15, 2011, to maintain compliance with targeted federal pension funding requirements. Based on the closing stock price on Sept. 1, the 4.1 million share contribution reduces that requirement by about $20 million.

"Furniture Brands is committed to addressing its pension status while maintaining the liquidity needed to manage the business in a challenging economic environment," said Steven G. Rolls, senior vice president and chief financial officer.

The complete press release can be downloaded from the Furniture Brands Web site.