BankBoston Arranges $140 Million Secured Credit Agreement for the Recapitalization of Russell-Stanley Corporation.

BOSTON--(BUSINESS WIRE)--Aug. 28, 1997--BankBoston and Russell-Stanley Corporation, based in Red Bank, New Jersey, today announced the successful signing of a US$ 140 million secured credit facility. In combination with a $55 million equity investment led by Vestar Capital Partners, the new credit facility will effect the recapitalization of the Company. The new bank agreement provides the Company with a $30 million revolving credit facility, and $110 million in three separate term loan tranches. The loans have been successfully syndicated to a group of twelve bank and non-bank investors.

Founded in 1927, Russell-Stanley is one of the largest steel and plastic drum manufacturers in the country. BankBoston has been Russell-Stanley Corp's primary bank since Vestar Capital Partners purchased the company in 1989.

In commenting on the financing arrangement, Russell-Stanley Corp. President and CEO Robert L. Singleton said, "The new credit facility provides a much higher degree of flexibility for Russell-Stanley, with lower costs and more favorable terms and conditions than those of the previous facility. This credit arrangement will add to our ability to execute our growth plans as well as significantly enhance our acquisition capabilities."

BankBoston Business Credit Group Executive Edward Collins said that this arrangement is typical of the innovative solutions that BankBoston provides for its customers. "This credit facility will help Russell-Stanley achieve its growth objectives and we look forward to continuing to support the future growth of the Company."

BankBoston Business Credit provides a broad range of financial services including asset-based and structured cash flow credit facilities. The Business Credit group has a national portfolio of approximately $3 billion in commitments with lenders located in Boston, Hartford, Atlanta, Greensboro, Dallas, Chicago and Palo Alto. BankBoston is also one of the top loan syndication banks in the nation for transactions in the $50-$350 million range.

BankBoston (NYSE:BKB), with assets of $66.1 billion as of June 30, 1997, was founded in 1784 and is the 15th-largest bank holding company in the United States. BankBoston is engaged in: consumer banking in southern New England; financing to selected corporations regionally, nationally and internationally; and full-service banking in key Latin American markets. The Corporation and its subsidiaries operate through a network of offices in the United States and through more than 100 offices in 23 countries in Latin America, Europe and Asia, the third-largest overseas network of any U.S. bank. The Corporation's common and preferred stocks are listed on the New York and Boston stock exchanges.

CONTACT: BankBoston

Karen Schwartzman, [phone]