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WAXMAN INDUSTRIES ANNOUNCES PROPOSED NOTE OFFERING

 BEDFORD HEIGHTS, Ohio, Aug. 4 /PRNewswire/ -- Waxman Industries, Inc. (NYSE: WAX), announced today that it has filed a registration statement with the Securities and Exchange Commission for a proposed public offering of Senior Subordinated Discount Notes due 2003. The Notes will be issued in such aggregate principal amount and bear such rate of interest as will generate gross proceeds of approximately $90 million. Cash interest payments will not begin until five and one half years after issuance of the Notes. Kidder, Peabody & Co. Incorporated is the managing underwriter of the proposed offering.
 The net proceeds of the offering, together with borrowings under a new three-year bank agreement expected to be entered into by the company's Barnett, Inc. subsidiary, will be used to redeem Waxman's outstanding Senior Secured Notes due 1998 and to repurchase a portion of its outstanding 13-3/4 percent Senior Subordinated Notes due 1999. The new Barnett bank agreement, which is expected to provide availability of up to $25 million, is in addition to Waxman's existing credit agreement, which was recently amended to provide availability up to $30 million and to extend the term through December 1995.
 Waxman also announced today that it expects to report a decrease in sales and operating income for the fourth quarter and fiscal year ended June 30, 1993. The company estimates that sales for the fourth quarter and fiscal year will approximate $87 million and $359 million, respectively, as compared to $98 million and $379 million during the fiscal 1992 periods. The declines in sales are primarily attributable to the continued effects of the Canadian recession, resulting in an approximate $8.7 million and $28 million decline in sales at the company's Canadian operations on a quarter-to-quarter and year-to-year basis, respectively.
 Results of operations are not yet available for the 1993 fourth quarter. However, the company expects that operating income for both the quarter and the year will be significantly below the levels attained last year, as a result of the sales decreases. In addition, the company expects to incur restructuring and other non-cash charges, the amount of which have not yet been determined, which will increase the net loss for the fourth quarter and fiscal year.
 Waxman Industries, Inc. is a leading supplier to the home repair and remodeling market in the United States and Canada. In the U.S., the company's plumbing, electrical and hardware products are sold primarily to home improvement centers, warehouse home centers, mass merchandisers, hardware stores, lumber yards and, through its mail order and telemarketing operations, to approximately 45,000 independent retailers, repair and remodeling contractors, property managers and locksmiths. The company assembles, packages and markets many of these products under its proprietary trade names. In Canada, the company is one of the largest suppliers of plumbing and heating products, serving approximately 10,000 customers across Canada, including repair and remodeling contractors, residential and commercial construction contractors and retailers.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 -0- 8/4/93
 /CONTACT: Jerome C. Jacques (investors) of Waxman Industries, Inc., 216-439-1830/
 (WAX)


CO: Waxman Industries, Inc. ST: Ohio IN: CST SU: OFR

KL -- CL021 -- 9576 08/04/93 17:33 EDT
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Publication:PR Newswire
Date:Aug 4, 1993
Words:614
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