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FEDERAL-MOGUL ISSUES A SECOND SERIES OF AAA-RATED ASSET-BACKED SECURITIES

 SOUTHFIELD, Mich., March 30 /PRNewswire/ -- Dennis J. Gormley, chairman and chief executive officer of Federal-Mogul Corporation (NYSE: FMO), today announced the completion of a trade receivables securitization totaling $40 million. The issue was privately placed by The First Boston Corporation. This is in addition to the first series issued in June 1992, and brings the total outstanding securitization to $95 million.
 "The securities are AAA rated by Standard & Poor's. They carry a floating rate of interest at London Interbank Offered Rates (LIBOR) plus 0.6 percent. With LIBOR currently at about 3.2 percent, our initial interest cost will be below 4 percent," Gormley explained.
 "We continue to search for ways to lower Federal-Mogul's cost of capital," added Martin E. Welch III, the company's senior vice president and chief financial officer. "Proceeds will be used to repay part of a $125 million bank term loan currently carrying an interest rate of LIBOR plus 2.5 percent.
 "We will save approximately $750,000 in interest expense per year," Welch continued. "This action is in line with our strategy to reduce costs and continue strengthening the company's financial position."
 Headquartered in Southfield, Federal-Mogul is a global distributor and manufacturer of a broad range of precision parts primarily for automobiles, light trucks, heavy trucks, and farm and construction vehicles. It operates 34 plants, more than 70 distribution centers and four major research centers around the world.
 -0- 3/30/93
 /CONTACT: Lonnie Ross of Federal-Mogul, 313-354-9934/
 (FMO)


CO: Federal-Mogul Corporation ST: Michigan IN: AUT SU: OFR

DH -- DE010 -- 1094 03/30/93 13:35 EST
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Publication:PR Newswire
Date:Mar 30, 1993
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