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MUSICLAND'S NOTE OFFERING DECLARED EFFECTIVE NET PROCEEDS OF SALE WILL BE $107.2 MILLION

 MINNEAPOLIS, June 10 /PRNewswire/ -- The Securities and Exchange Commission today declared effective the offering of $110 million Senior Subordinated Notes due 2003 for Musicland Stores Corporation (NYSE: MLG) and its wholly owned subsidiary, The Musicland Group, Inc.
 The notes are offered at a yield of 9 percent. The net proceeds of the sale, after underwriting discounts and other expenses, are approximately $107.2 million. The funds raised by the sale of the notes will be used to redeem Musicland Stores Corporation's $53.5 million 14-3/4 percent Junior Subordinated Debentures and for general corporate purposes, including capital expenditures. The offering is managed by Donaldson, Lufkin & Jenrette Securities Corporation and J.P. Morgan Securities, Inc.
 Earlier this week, Standard & Poor's (S & P) assigned its 'B plus' rating to the Senior Subordinated Notes, and Moody's assigned them a rating of 'B1'. S & P also raised its rating on the $53 million Junior Subordinated Debentures to 'B plus' from 'B'. Moody's improved its rating on the same debentures to 'B1' from 'B2'.
 Headquartered in Minneapolis, Musicland Stores Corporation is the leading specialty retailer of pre-recorded home entertainment products in the United States. As of March 31, 1993, the company operated 1,137 stores in 49 states, Puerto Rico and the United Kingdom.
 A registration statement relating to the securities has been filed with the Securities and Exchange Commission and is now effective. The offering of the securities is made only by means of the prospectus, which can be obtained from the underwriters or from Investor Relations, Musicland Stores Corporation, 7500 Excelsior Boulevard, Minneapolis, 55426.
 -0- 6/10/93
 /CONTACT: Marcia Appel 612-932-7742, or Keith Benson, 612-932-7790 both of Musicland/
 (MLG)


CO: Musicland Stores Corporation ST: Minnesota IN: ENT SU: OFR

DB -- MN025 -- 0875 06/10/93 18:22 EST
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Publication:PR Newswire
Date:Jun 10, 1993
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