Fleetwood to pay convertible trust preferred dividend in cash

New York, Aug. 13 - Fleetwood Enterprises, Inc. said it will pay the scheduled Aug. 15 dividend on its 9.5% convertible trust preferred securities in cash.

The Riverside, Calif. recreational vehicles and manufactured housing company had previously said it would pay the dividend in stock.

"A dividend payment in shares of our common stock would have been more dilutive than we considered appropriate for our shareholders as a result of the recent decline in our common stock price," said Fleetwood's chief financial officer Boyd R. Plowman in a news release. "Given our strong cash position and improving operating results, we decided it made sense to pay the dividend in cash."

Fleetwood also said that it will continue to defer interest payments on its 6% convertible trust preferred securities.

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