August 21, 2009 (FinancialWire) — The Brink’s Co. (NYSE: BCO) said it made a voluntary $150 million contribution to its U.S. pension plan to improve the funded status of the plan. The contribution was comprised of $92.4 million of cash and 2,260,738 newly issued shares of Brink’s common stock valued at $57.6 million.

In a statement, the company said that the contribution addresses its pension obligation, “in a proactive and tax-efficient manner,” while enhancing its financial flexibility to invest in future growth opportunities.

The contribution was made as a 2008 plan year contribution for income tax reporting purposes. As a result, Brink’s expects to generate around $30 million in cash flow in 2009 from tax benefits related to the contribution. The balance of the cash portion of the contribution, around $62 million, was financed with debt.

At December 31, 2008, the U.S. pension plan was underfunded by $308 million. After taking into account the contribution and a remeasurement of plan assets and obligations as of July 1, 2009, the plan’s underfunding has been reduced by almost $200 million to a pro forma deficit of around $109 million. As a result, the plan’s obligations are around 85% funded, according to Brinks.

In addition, the company said it expects its 2009 pretax earnings to improve by around $4 million due to the contribution, reflecting estimated pension income of $6 million versus a prior estimate of $2 million.

The projected $4 million increase, which will be recognized ratably in earnings for the third and fourth quarters of 2009, will be partially offset by increased borrowing costs.

Brinks said that the net effect of the contribution, including related borrowing costs and the dilutive impact of issuing new shares, is expected to be accretive to earnings by around two cents per share in 2009 and four cents per share in 2010.

The contribution also is expected to reduce required contributions to the plan in 2010 and 2011 by a total of $94 million, thereby enhancing the company’s flexibility to pursue future growth opportunities.

Richmond, Virginia-based Brink’s is a provider of secure transportation and cash management services.

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