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GLENDALE FEDERAL BANK RECEIVES OTS APPROVAL TO REDUCE MINIMUM ACCEPTANCE RATE OF EXCHANGE OFFER

 GLENDALE, Calif., Aug. 11 /PRNewswire/ -- Glendale Federal Bank today announced that it has applied for and received approval from the Office of Thrift Supervision (OTS) to reduce from 90 percent to 80 percent the minimum acceptance rate on the exchange offer for the 7.75 percent Convertible Subordinated Debentures due 2001 of GLENFED Inc. (NYSE: GLN), its parent corporation. As previously announced, the exchange offer will expire at midnight New York time on Wednesday, Aug. 18, 1993.
 Commented Stephen J. Trafton, chairman and chief executive officer of Glendale Federal Bank, "The debentures were originally offered and sold in the European market in the form of bearer bonds. Accordingly, there is no registry of debentureholders. We have advertised the exchange offer both in Europe and in the United States. In addition, extensive efforts to identify debentureholders have been undertaken by The First Boston Corp., dealer manager for the exchange offer, Chemical Bank, information and exchange agent, and Houlihan, Lokey, Howard & Zukin Inc., financial advisers to an informal steering committee of debentureholders that has recommended acceptance of the exchange offer."
 Trafton continued, "The response to the exchange offer has been favorable by nearly all of the debentureholders we have been able to identify, but we believe it advisable to reduce the minimum acceptance condition to ensure the success of our overall recapitalization efforts, of which the exchange offer is only one of several interrelated transactions. We are quite pleased with the progress to date on all aspects of our recapitalization effort, and are on track to complete the transactions according to schedule."
 Members of the preferred stock steering committee, representing more than two thirds of the outstanding issue, have agreed to recommend to their respective principals and companies that they proceed with the transaction under the new terms. Preferred stockholders are simultaneously considering a reclassification of their preferred stock as a part of the recapitalization of the bank.
 All other terms of the exchange offer will remain the same: for each $1,000 in principal amount, GLENFED debentureholders will receive 51.06 shares of bank common stock, $77.50 in cash, representing the installment of interest on the GLENFED debentures that was due on March 15, 1993, and not paid, and 8.34 rights to purchase additional shares of bank common stock in the proposed rights offering.
 Information and documentation regarding the exchange offer can be obtained from Chemical Bank, by calling 800-851-2687 or 212-613-7618 (call collect); The First Boston Corp., by calling Joseph D. Carrabino Jr. at 212-909-3742; or Houlihan, Lokey, Howard & Zukin, by calling Cary J. Stanford at 310-788-5291.
 Glendale Federal Bank is the nation's fifth-largest savings bank. It provides community banking services through 215 banking offices in California, Florida and Washington State.
 -0- 8/11/93
 /CONTACT: Judy Cunningham, 818-500-2274, or Jeff Misakian, 818-500-2824, both of Glendale Federal Bank/
 (GLN)


CO: Glendale Federal Bank; GLENFED Inc. ST: California IN: FIN SU:

BP-JL -- LA034 -- 1858 08/11/93 16:47 EDT
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Publication:PR Newswire
Date:Aug 11, 1993
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