Lehman Brothers Collection - Contemporary Business Archives

Harvard Business School Baker Library Historical Collections

Lehman Brothers Collection

Twentieth-Century Business Archives

The Mead Corporation Deal - Lehman Brothers Collection

The Mead Corporation

Company Dealissue of 50,000 shares of $5.50 cumulative preferred stock, series B (without par value) (with warrants for the purchase of common stock, series of 1937, attached)
Transaction TypeCumulative Preferred Stock
Deal DescriptionThe Mead Corporation used the net proceeds from this transaction to increase its investment in the capital stock of Brunswick Pulp & Paper Company, which had under construction a pulp mill in Brunswick, Georgia, and to reimburse the treasury of the company for its present investment therein. Another portion of the proceeds was used to increase the company's investment in the capital stock of St. Joe Paper Company, which had under construction a pulp and paperboard mill in Port St. Joe, Florida, and to reimburse the treasury of the company for its present investment therein. Another portion of the proceeds was used for additional machinery, equipment, improvements, and extensions in or to the company's plant in Chillicothe, Ohio, including improvements to paper machine and additions to the power plant consisting of a new boiler and a new turbine. Another portion of the proceeds was used for additional machinery, equipment, betterments, and extensions, or any of the same, in and to the company's plant in Kingsport, Tennessee, including a new boiler house and turbine equipment, new super-calendering equipment, re-building offices, repair shops, and stores, water supply and filter plant improvements and yard changes, improvements to existing paper-making equipment, brick, steel, and concrete buildings for housing additional paper-making and stock-preparation equipment, new stock-preparation equipment, and additional paper-making equipment and the transfer from the dismantled Flat Rock plant of the Company of a paper machine, and the re-building and installation thereof, and additional paper-finishing equipment. An additional portion of the proceeds was used for modernization of plant and equipment at the plant of Dill and Collins Incorporated. The remainder of the proceeds was used by the company and/or advanced to any one or more of its subsidiaries, or to St. Joe Paper Company, for working capital, payments on purchase contracts, retiring in whole or in part indebtedness of subsidiaries, replacements, renewals, betterments, improvements, extensions, and/or other corporate purposes.
Harvard Business School Harvard Business School Baker Library Histrorical Collections