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LITTELFUSE CLOSES $110 MILLION REFINANCING WITH FAVORABLE TERMS LED BY FIRST CHICAGO

 DES PLAINES, Ill., Sept. 2 -- Littelfuse, Inc. (NASDAQ: LFUS), the world's technological leader in advanced circuit protection devices, closed on Aug. 31 the $110 million refinancing package arranged by the First National Bank of Chicago as agent and lead bank and first announced July 15.
 The refinancing replaces what remained of the company's $125 million inherited debt with $45 million of private placement notes, a $25 million bank term loan, and a $40 million bank revolving line of credit. Approximately $20 million of the $40 million revolver was used at the closing, leaving $20 million available for future general corporate purposes. Littelfuse had retired approximately $36 million of its inherited debt by Aug. 31, just 20 months following its former parent company's restructuring, most of it ahead of schedule.
 Howard B. Witt, chairman, president and chief executive officer, said, "This refinancing not only recognizes our company's strong operating performance and debt repayment capability over this first one and two-thirds years, but it also significantly strengthens our financial position and strategic flexibility to maintain our momentum for years to come. The refinancing is a very important development in our strategic progress, with more favorable terms, substantially greater flexibility, and increased financial strength," Witt noted.
 James F. Brace, vice president, treasurer and chief financial officer, said the $45 million private placement notes were issued at a fixed rate of 6.31 percent. The seven year notes begin amortizing in the third year resulting in a five year average maturity. The 6.31 rate was the five year Treasury rate plus 135 basis points at the time of placement in mid-July. The $45 million of notes, rated BBB investment grade by Duff & Phelps, were placed in equal amounts with Connecticut Mutual Insurance Company of Hartford, Great West Life Insurance Company of Canada, and MONY Capital Management of New York.
 The $25 million five year bank term loan and the $40 million bank revolver initially will have a floating rate of LIBOR plus 1.375 percent of the U.S. prime. This compares to the old credit agreement rates of LIBOR plus 2.5 percent of prime plus 1.5 percent. The new bank credit agreement matures in five years. The banks participating along with the First National Bank of Chicago are Credit Agricole of France, the Long Term Credit Bank of Japan, Boatmen's National Bank of St. Louis, Continental Bank and the Northern Trust Company, both of Chicago.
 The modest reduction in overall interest expense resulting from the refinancing is less significant than the strategic importance of locking in rates on the notes at today's historically favorable rate levels and shedding restrictions of the previous credit agreement, Brace said. The new notes and credit agreements are on an unsecured basis, have more favorable limits on capital expenditures, permit acquisitions or alliances, and permit stock or warrant buybacks as well as dividends, he indicated.
 Littelfuse is the leading producer of electronic and automotive fuses worldwide, and is extending its technological leadership to innovative new fuses for the power equipment industry. In addition to its Des Plaines plant and world headquarters, the company has manufacturing facilities in England, Switzerland and Mexico as well as Centralia, Arcola and Watseka, Ill. It also has sales, engineering and distribution facilities in the Netherlands, Singapore, and Farmington Hills, Mich., near Detroit.
 -0- 9/2/93
 /CONTACT: Jim Brace, VP, treasurer & CFO or Art Skwerski, director of communications, 708-824-1188, of Littelfuse, Inc./


CO: Littelfuse, Inc. ST: Kansas IN: SU:

SH -- NY014 -- 8300 09/02/93 09:44 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
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