Park Electrochemical declares special dividend

Brian E. Shore, chief executive, Park Electrochemical Corp. Brian E. Shore, chief executive, Park Electrochemical Corp. if Melville. Photo Credit: Handout, 2009

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Park Electrochemical Corp. has declared a special $2.50- per-share cash dividend to be financed either through a bank loan or with available cash, the Melville company said Tuesday.

To pay for that dividend, the company said it might bring cash back to the United States that is currently held in its overseas subsidiaries.

Shares of Park rose 9 cents to close at $29.76.

In a telephone interview, Park chief executive Brian Shore said the company has made a practice of issuing special dividends since fiscal 2005, including one for $2.50 per share a year ago.

All told, Shore said, the dividends since fiscal 2005 have had a total value of about $10 per share.

The newly announced special dividend would cost the company about $52 million. The dividend is payable Feb. 25 to shareholders of record as of Feb. 11.

Park said Tuesday it plans to record a charge for the fiscal year ending March 2 related to federal income tax that would arise if it repatriated funds from foreign subsidiaries. If Park did bring that money back to the United States from overseas, it said it could be used to pay for the special dividend and an existing bank loan, or to pay off any debt taken on to finance the special dividend.

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About $235 million out of Park's total $291 million in cash was held by its foreign subsidiaries as of Dec. 31. The company said a final decision to repatriate the funds had not been made.

Bank of America Merrill Lynch advised Park's management on the special dividend, which would be paid in addition to the company's quarterly 10-cent per share dividend.

Park, which makes printed circuit materials for telecommunications infrastructure, and composite materials and parts for the aerospace market, has factories abroad in Singapore and France, and domestically in Kansas, Arizona and California, as well as research facilities in Arizona, Kansas and Singapore.

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