Mueller Industries, Inc. Announces 30 Percent Increase in Quarterly Cash Dividend and Authorization to Redeem the 2027 Subordinated Debentures

Rhea-AI Summary

Mueller Industries, Inc. (NYSE: MLI) has declared a quarterly cash dividend of 13 cents per share, payable on April 2, 2021, to shareholders of record by March 19, 2021. Additionally, the company will redeem its Subordinated Debentures due 2027, incurring a 6% annual interest rate, funded by cash on hand and a revolving credit facility at 1.5% interest. In 2020, the interest paid on these Debentures was $17 million, which the company aims to eliminate through this redemption.

Positive

• Declaration of a quarterly cash dividend of 13 cents per share, demonstrating confidence in shareholder returns.
• Redemption of high-interest Debentures could reduce future interest expenses.

Negative

• None.

Mueller Industries, Inc. (NYSE: MLI) announced today that its Board of Directors has declared a regular quarterly cash dividend on its common stock of 13 cents per share. The dividend will be payable April 2, 2021, to shareholders of record on March 19, 2021.

In addition, the Board also authorized the full redemption of the Company’s Subordinated Debentures due 2027 pursuant to the terms of the underlying indenture. The Company expects to issue a notice of full redemption to the holders of the Debentures on or about February 25, 2021.

The redemption of the Debentures, which incur a 6% annual interest rate, will be funded with cash on hand and draws on the Company’s revolving credit facility, currently with an interest rate of 1.5%. In 2020, the Company paid $17 million in interest related to the outstanding Debentures.

Mueller Industries, Inc. (NYSE: MLI) is an industrial corporation whose holdings manufacture vital goods for important markets such as air, water, oil and gas distribution; climate comfort; food preservation; energy transmission; medical; aerospace; and automotive. It includes a network of companies and brands throughout North America, Europe, Asia, and the Middle East.

Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. These include economic and currency conditions, continued availability of raw materials and energy, market demand, pricing, competitive and technological factors, and the availability of financing, among others, as set forth in the Company's SEC filings. The words "outlook," "estimate," "project," "intend," "expect," "believe," "target," "encourage," "anticipate," "appear," and similar expressions are intended to identify forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. The Company has no obligation to publicly update or revise any forward-looking statements to reflect events after the date of this report.

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FAQ

What is the dividend amount declared by Mueller Industries (MLI)?

Mueller Industries has declared a quarterly cash dividend of 13 cents per share.

When is the dividend payment date for Mueller Industries (MLI)?

The dividend will be payable on April 2, 2021.

What are the record dates for the dividend for Mueller Industries (MLI)?

Shareholders must be on record by March 19, 2021, to receive the dividend.

What is the interest rate for Mueller Industries' Debentures?

The Debentures incur a 6% annual interest rate.

How will Mueller Industries fund the redemption of its Debentures?

The redemption will be funded using cash on hand and draws from the company's revolving credit facility.