Fleetwood pays deferred distributions due on 6% convertible trust preferreds

By Angela McDaniels

Seattle, March 9 - Fleetwood Enterprises Inc. paid the outstanding cumulative deferred obligation on its 6% convertible trust preferred securities on Feb. 15 and the current distribution due on that date, according to a company news release.

The total amount of distributions accrued and deferred, including interest, was $61.2 million as of Jan. 29.

The board of directors elected to defer distributions on the preferreds for up to 20 consecutive quarters on Oct. 30, 2001. Now that the distributions have been paid, the company said it has the right to defer distributions for up to another 20 consecutive quarters.

Fleetwood may not declare or pay dividends on its common stock during the period of deferral, the company noted.

Fleetwood paid the deferred distributions after its consolidated revenue increased by 15% to $583.9 million for the fiscal 2006 third quarter ended Jan 29 from $509.2 million for the third quarter of 2005.

"Our financial improvement was largely due to orders related to disaster relief and, to a lesser extent, the benefits of our ongoing operational and organizational changes," president and chief executive officer Elden L. Smith said in the company news release.

Fleetwood Enterprises produces recreational vehicles and manufactured homes and is based in Riverside, Calif.

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