Nicor announces financing for Tropical repatriation

Nicor announces financing for Tropical repatriation Nicor Inc., the parent company of Tropical Shipping, announced Thursday that Tropical had arranged a $40 million financing package to fund a portion of its repatriation tax from the American Jobs Creation Act of 2004.
   Tropical obtained a $40 million, two-year unsecured term loan to fund a portion of repatriation of its cumulative undistributed foreign earnings under the foreign earnings repatriation provision of the legislation.
   Nicor said the funds from the term loan will be used in conjunction with cash available at Tropical Shipping to repatriate about $130 million of cumulative undistributed foreign earnings.
   The company said its fourth quarter financial statements will reflect an income tax benefit to the extent repatriated earnings are taxed at a rate of 5.25 percent, versus a previously estimated tax rate of 35 percent. The company estimates that the year-end financial statements will reflect a benefit of up to 50 percent of the $130 million dividend qualifying for the 5.25 tax rate. The actual benefit could vary based on Tropical's final 2005 financial statement, Nicor said.