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DSC ANNOUNCES COMMITMENTS FROM SENIOR LENDERS

 DSC ANNOUNCES COMMITMENTS FROM SENIOR LENDERS
 DALLAS, Aug. 6 /PRNewswire/ -- DSC Communications Corporation


(NASDAQ: DIGI) announced today that the company and its senior unsecured lenders have signed a commitment outlining the basic terms and conditions to restructure the company's existing senior unsecured indebtedness. Separately, Texas Commerce Bank and Philadelphia National Bank jointly agreed to provide the company an additional $20 million line of credit. Both agreements are subject to, among other things, negotiation and execution of final documentation.
 As part of the restructuring, DSC will reduce its current outstanding senior unsecured debt with a cash payment of $35 million. Following the payment, the company's total senior term debt would be approximately $125 million. The commitment provides that the majority of the senior term debt will bear interest at prime plus 1-3/4 percent, although $25 million of this amount will continue to bear interest at 9.48 percent. The terms of the commitment provide for maturity on June 30, 1996 and an amortization schedule of $5 million per quarter in the first year and, $8.7 million per quarter in the second, third and fourth years. The indebtedness will be collateralized by the company's domestic real estate and equipment.
 The proposed new $20 million revolving credit agreement, which would be available as needed, from Texas Commerce Bank and Philadelphia National Bank, would expire June 30, 1993. If used, it would bear interest at prime plus 1-1/2 percent and be collateralized by the company's domestic trade accounts receivable and inventory.
 Covenants associated with the term indebtedness and line of credit generally relate to the current ratio, leverage ratio, tangible net worth, debt coverage and level of working capital.
 DSC Communications Corporation is a leading designer, developer, manufacturer and marketer of digital switching, transmission and private network system products for the worldwide telecommunications marketplace.
 -0- 8/6/92
 /CONTACT: Terry Adams of DSC Communications, 214-519-4358/
 (DIGI) CO: DSC Communications Corporation ST: Texas IN: TLS SU: FNC


LR -- NY068 -- 7613 08/06/92 12:39 EDT
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Publication:PR Newswire
Date:Aug 6, 1992
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