-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JVlZgthf+4TC+6xPwk0RZgDMvpogbqug4PnCBN3LyxX33beDUbdzHCP1b9FGYmJo VyWO1i+goKH4Q1/oBQRdTA== 0000083604-99-000020.txt : 19990517 0000083604-99-000020.hdr.sgml : 19990517 ACCESSION NUMBER: 0000083604-99-000020 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REYNOLDS METALS CO CENTRAL INDEX KEY: 0000083604 STANDARD INDUSTRIAL CLASSIFICATION: PRIMARY PRODUCTION OF ALUMINUM [3334] IRS NUMBER: 540355135 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: SEC FILE NUMBER: 033-43443 FILM NUMBER: 99623359 BUSINESS ADDRESS: STREET 1: 6601 W BROAD ST STREET 2: PO BOX 27003 CITY: RICHMOND STATE: VA ZIP: 23261 BUSINESS PHONE: 8042812000 424B3 1 Rule 424(b)(3) Registration No. 33-43443 Pricing Supplement No. 39 Dated May 13, 1999 To Prospectus dated November 5, 1991 and Prospectus Supplement dated November 6, 1991 REYNOLDS METALS COMPANY Medium-Term Notes Due from 9 Months to 30 Years from Date of Issue This Pricing Supplement describes our sale of Notes through Merrill Lynch & Co., as agent. Except as set forth in this Pricing Supplement, the Notes offered hereby have such terms as are described in the Prospectus dated November 5, 1991, as amended and supplemented by the Prospectus Supplement dated November 6, 1991. Principal Amount: $100,000,000 Interest Rate (fixed rate): 7.00% Stated Maturity: May 15, 2009 Amortization Schedule: Installments of principal on the Notes will be paid annually on each May 15, beginning May 15, 2005, to the persons in whose names the Notes are registered at the close of business on the May 1 immediately preceding such May 15. The principal installments to be paid on each payment date for each $100,000 original principal amount are set forth below: Principal Payment Date Payment ------------ ------- May 15, 2005 $20,000 May 15, 2006 20,000 May 15, 2007 20,000 May 15, 2008 20,000 May 15, 2009 20,000 Specified Currency: U.S. dollars Issue price (as a percentage of principal amount): 100% Selling Agent's commission (%): 0.60% 2 Net proceeds to Reynolds (%): 99.40% Settlement date (original issue date): May 18, 1999 Redemption Commencement Date (if any): None. The Notes are not redeemable by Reynolds before their Stated Maturity. Put Right of Holders upon a Designated Event and a Rating Decline: Applicable Interest Payment Date(s): As stated in the Prospectus Supplement Regular Record Date(s): As stated in the Prospectus Supplement Book-Entry Note: Applicable CUSIP No.: 76176L FF 3 As of the date of this Pricing Supplement, we have sold $1,637,500,000 aggregate principal amount (having an aggregate initial public offering price of $1,637,250,000) of debt securities described in the Prospectus, including the Notes to which this Pricing Supplement relates. USE OF PROCEEDS We intend to add the net proceeds from the sale of the Notes to our general funds to be used for general corporate purposes, including reduction of outstanding indebtedness. The indebtedness to be repaid initially consists of commercial paper (currently bearing interest at an average annual rate of 4.9%) incurred in the second quarter of 1999, the proceeds from which were used for general corporate purposes. Thereafter, we intend to re-issue commercial paper, using the proceeds to repay at maturity $100,000,000 aggregate principal amount of Reynolds' 9-3/8% Debentures due June 15, 1999. 2 3 SELECTED FINANCIAL INFORMATION The following table summarizes selected financial information relating to Reynolds and its consolidated subsidiaries for the five years ended December 31, 1998 and the quarters ended March 31, 1998 and 1999. You should read this information in conjunction with the audited consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 1998 and the unaudited consolidated financial statements and notes contained in our quarterly report on Form 10-Q for the quarter ended March 31, 1999. In the opinion of our management, the quarterly amounts contain all adjustments (consisting only of normal recurring accruals) necessary for a fair statement of the results of operations for such periods. The results for the quarterly periods are not necessarily indicative of results for a full year.
YEARS ENDED DECEMBER 31 ---------------------------------------------- 1994 1995 1996 1997 1998 ---- ---- ---- ---- ---- ($ IN MILLIONS EXCEPT PER SHARE AND RATIO AMOUNTS) STATEMENT OF OPERATIONS DATA Revenues....................... $5,925 $7,252 $7,016 $6,900 $5,859 Cost of products sold.......... 4,950 5,739 5,856 5,658 4,774 Selling, general and administrative expenses...... 376 449 445 406 378 Depreciation and amortization.. 341 344 365 368 252 Interest....................... 156 172 160 153 114 Operational restructuring effects - net................ (88) - 37 75 144 ---------------------------------------------- Total Costs and Expenses... 5,735 6,704 6,863 6,660 5,662 ---------------------------------------------- Income (loss) before income taxes, extraordinary loss and cumulative effects of accounting changes........... 190 548 153 240 197 Taxes on income (credit)....... 68 159 49 104 45 ---------------------------------------------- Income (loss) before extraordinary loss and cumulative effects of accounting changes........... 122 389 104 136 152 Extraordinary loss............. - - - - (63) Cumulative effects of accounting changes........... - - (15) - (23) ---------------------------------------------- Net income (loss).............. $ 122 $ 389 $ 89 $ 136 $ 66 ============================================== EARNINGS PER SHARE: BASIC Income (loss) before extraordinary loss and cumulative effects of accounting changes......... $ 1.42 $ 5.60 $ 1.06 $ 1.86 $ 2.18 Extraordinary loss........... - - - - (0.91) Cumulative effects of accounting changes......... - - (0.24) - (0.33) ---------------------------------------------- Net income (loss)............ $ 1.42 $ 5.60 $ 0.82 $ 1.86 $ 0.94 ============================================== DILUTED Income (loss) before extraordinary loss and cumulative effects of accounting changes......... $ 1.41 $ 5.25 $ 1.06 $ 1.84 $ 2.18 Extraordinary loss........... - - - - (0.91) Cumulative effects of accounting changes......... - - (0.24) - (0.33) ---------------------------------------------- Net income (loss)............ $ 1.41 $ 5.25 $ 0.82 $ 1.84 $ 0.94 ============================================== Cash dividends declared per common share............... $ 1.00 $ 1.20 $ 1.40 $ 1.40 $ 1.40 ============================================== Ratio of earnings to fixed charges................. 2.0x 3.7x 1.6x 2.3x 2.5x BALANCE SHEET DATA Total assets................... $7,461 $7,740 $7,516 $7,226 $6,134 Long-term debt................. 1,848 1,853 1,793 1,501 1,035 Total stockholders' equity..... 2,272 2,617 2,634 2,739 2,194 ____________ (a) The ratio of earnings to fixed charges is not presented for the first quarter of 1999 because earnings were inadequate to cover fixed charges by approximately $9 million.
QUARTERS ENDED MARCH 31 --------------------- 1998 1999 ---- ---- ($ IN MILLIONS EXCEPT PER SHARE AND RATIO AMOUNTS) STATEMENT OF OPERATIONS DATA Revenues....................... $1,532 $1,068 Cost of products sold.......... 1,251 925 Selling, general and administrative expenses...... 93 82 Depreciation and amortization.. 70 57 Interest....................... 34 20 Operational restructuring effects - net................ - - --------------------- Total Costs and Expenses... 1,448 1,084 --------------------- Income (loss) before income taxes, extraordinary loss and cumulative effects of accounting changes........... 84 (16) Taxes on income (credit)....... 26 (6) --------------------- Income (loss) before extraordinary loss and cumulative effects of accounting changes........... 58 (10) Extraordinary loss............. - - Cumulative effects of accounting changes........... (23) - --------------------- Net income (loss).............. $ 35 $ (10) ===================== EARNINGS PER SHARE: BASIC Income (loss) before extraordinary loss and cumulative effects of accounting changes......... $ 0.78 $(0.15) Extraordinary loss........... - - Cumulative effects of accounting changes......... (0.32) - --------------------- Net income (loss)............ $ 0.46 $(0.15) ===================== DILUTED Income (loss) before extraordinary loss and cumulative effects of accounting changes......... $ 0.78 $(0.15) Extraordinary loss........... - - Cumulative effects of accounting changes......... (0.32) - --------------------- Net income (loss)............ $ 0.46 $(0.15) ===================== Cash dividends declared per common share............... $ 0.35 $ 0.35 ===================== Ratio of earnings to fixed charges................. 3.1x - BALANCE SHEET DATA Total assets................... $7,196 $6,107 Long-term debt................. 1,595 1,123 Total stockholders' equity..... 2,639 2,142 ____________ (a) The ratio of earnings to fixed charges is not presented for the first quarter of 1999 because earnings were inadequate to cover fixed charges by approximately $9 million.
3 4 WHERE YOU CAN FIND MORE INFORMATION The reports, proxy statements and other information that Reynolds files with the SEC, which are described under the heading "AVAILABLE INFORMATION" in the Prospectus, are also available from the SEC's web site at http://www.sec.gov. 4 -----END PRIVACY-ENHANCED MESSAGE-----