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CONE MILLS ANNOUNCES DEBT REFINANCING

 CONE MILLS ANNOUNCES DEBT REFINANCING
 GREENSBORO, N.C., Aug. 17 /PRNewswire/ -- Cone Mills Corporation


(NYSE: COE) announced today that it has completed the refinancing of its outstanding credit facility. Cone obtained a 10-year unsecured loan of $75,000,000, having a fixed interest rate of 8 percent, from The Prudential Insurance Company of American and a three-year unsecured revolving credit facility of $60,000,000 bearing a floating interest rate, from Morgan Guaranty Trust Company, who arranged the facility, First Union National Bank, NationsBank and Wachovia Bank and Trust Company. The company's existing secured bank credit facility was repaid and terminated.
 Cone simultaneously entered into a Receivables Purchase Agreement with Delaware Funding Corporation, an affiliate of Morgan Guaranty, which provides for the sale by Cone from time to time of up to $40,000,000 of its accounts receivable. The receivables purchases will be financed primarily through the sale by Delaware Funding of commercial paper.
 "We believe that these new credit arrangements demonstrate the confidence of the financial community in Cone and its future," said Cone President J. Patrick Danahy. "Our new financial structure should enable us to take better advantage of growth opportunities presented to us by changing domestic and worldwide markets."
 John L. Bakane, Cone's chief financial officer, stated: "We are pleased to complete this final step in reconfiguring our financial structure that began with our successful public offering completed in June 1992. We believe that the new structure will increase our flexibility and, therefore, our profit potential."
 Cone Mills Corporation, headquartered in Greensboro, N.C., is the largest producer of denim fabrics in the world and is the largest printer of home furnishings fabrics in the United States. The company is the largest domestic exporter of denims and is a major exporter of printed home furnishings fabrics. The company's manufacturing plants are located in North Carolina, South Carolina and Mississippi.
 -0- 8/17/92
 /CONTACT: John L. Bakane, vice president & CFO of Cone Mills Corporation, 919-379-6220/
 (COE) CO: Cone Mills Corporation ST: North Carolina IN: TEX SU:


AW-JJ -- CH008 -- 0563 08/17/92 13:47 EDT
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Publication:PR Newswire
Date:Aug 17, 1992
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