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Behind Joy Global’s Latest SEC Filing: Key Highlights

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Aug. 24 2016, Updated 11:04 a.m. ET

JOY’s special meeting of stockholders

Joy Global’s (JOY) special meeting of stockholders will be held in Milwaukee, Wisconsin, at 100 E. Wisconsin Avenue, in the second floor Conference Room. The date of the meeting will be finalized after its upcoming results.

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Will JOY’s shares be delisted?

If the proposed merger with Komatsu is completed, JOY’s common stock will be delisted from the New York Stock Exchange and deregistered under the Securities Exchange Act of 1934. JOY expects the merger to be completed in mid-2017 if a majority shareholders approve the deal.

What happens if the deal is not completed?

In the event that both industrial (XLI) companies Komatsu and Joy Global terminate the merger agreement, JOY will pay Komatsu termination fees equaling $75 million, which will certainly hurt JOY’s profitability going forward.

However, if Komatsu terminates the merger agreement—or if it breaches certain of its covenants and obligations under the merger agreement—Komatsu will pay Joy Global termination fees of $150 million.

ETF investments

JOY is part of the SmallCap Earning Fund ETF (EES), accounting for 1.4% of the fund’s total holdings. Investors in this ETF could benefit if JOY performs well in the current weak and volatile market. Notably, EP Energy (EPE) and First BanCorp (FBP) are among the top ten holdings of EES, accounting for 1.7% and 1.0%, respectively, of the ETF.

But how capable is Joy Global of repaying its debt? Continue to the next part to find out.

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