JOY GLOBAL INC.
At the Company:
Donald C. Roof
Executive Vice President and
Chief Financial Officer and Treasurer
414-319-8517
At FRB | Weber Shandwick:
Georganne Palffy
Analyst Contact
312-640-6768
Milwaukee, WI – June 1, 2005 — Joy Global Inc. (the “Company”) (Nasdaq: JOYG), announced that it has decided not to proceed with its proposed private offering of convertible senior subordinated notes. While the offering generated significant demand, the company determined that the terms currently available in the market were not sufficiently attractive. Commenting on the withdrawal of the offering, John Hanson, Chairman, President and CEO said “While we were pleased with investor support for this transaction, the conversion premium available to us did not recognize the significant future value we see in our stock.”
The company intends to finance the tender offer for the 8.75% senior subordinated notes with cash on hand and existing credit facilities. The withdrawal of the convertible senior subordinated note offering has no effect on the $300 million stock buyback program previously announced by the company.
The company will continue to explore appropriate long-term debt financing alternatives, but has no plans to pursue an alternative convertible bond financing at this time.
About the Company
Joy Global Inc. is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining through P&H Mining Equipment and underground mining through Joy Mining Machinery.
Forward Looking Statements
This communication contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that relate to prospective events or developments are deemed to be forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “will” and similar words are intended to identify forward-looking statements. These forward-looking statements, which may include, but are not limited to, statements concerning the financial condition, results of operations and businesses of the Company, are based on management’s current expectations and estimates and involve risks and uncertainties that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements.
Factors that could cause or contribute to such differences may include, but are not limited to, market conditions, unanticipated expenditures, conditions of the economy and other factors described in our most recent reports on Form 10-Q, as amended, most recent reports on Form 10-K, as amended, and other periodic reports filed by the Company with the SEC.
