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AMERICAN FINANCIAL ENTERPRISES, INC. ANNOUNCES THE OFFERING OF 4,400,000 SHARES OF COMMON STOCK OF THE PENN CENTRAL CORPORATION AND REDEMPTION OF ALL OF ITS OUTSTANDING 13-7/8 PERCENT SUBORDINATED NOTES

 CINCINNATI, July 29 /PRNewswire/ -- American Financial Enterprises, Inc. ("AFEI") announced today the secondary public offering of 4,400,000 shares of common stock of The Penn Central Corporation (NYSE: PC) at $35.25 per share, of which 3,900,000 shares are being offered in the United States and 500,000 shares are being offered in other countries. AFEI has also granted an over-allotment option to the underwriters for an additional 660,000 shares. The net proceeds to AFEI after the underwriting discount will be approximately $149 million, or $171 million if the over-allotment option is exercised in full. The Company expects to realize a gain of several million dollars from the transaction.
 The First Boston Corporation, Donaldson, Lufkin & Jenrette Securities Corporation, Salomon Brothers Inc and S.G.Warburg & Co. Inc. are acting as managers for the underwriting syndicate of the U.S. offering. Credit Suisse First Boston Limited, Donaldson, Lufkin & Jenrette Securities Corporation, Salomon Brothers International Limited and S.G.Warburg Securities Ltd. are acting as lead managers of the international offering.
 AFEI will use a portion of the proceeds of the sale to redeem all $102.5 million principal amount of its outstanding 13-7/8 percent Subordinated Notes due Sept. 22, 1993 (the "Notes"), which the Company has called for redemption at 100 percent of the principal amount plus accrued interest. AFEI has set Aug. 28, 1993 as the redemption date.
 If the over-allotment option is exercised by the underwriters, AFEI plans to use the remaining proceeds of the sale to pay off its $60 million of bank debt. If the over-allotment option is not exercised in full, the Company expects to enter into a new agreement with lenders to refinance any debt remaining after the sale.
 AFEI is a holding company whose assets consist chiefly of investments in Penn Central and two other publicly traded companies -- General Cable Corporation (28 percent owned) and American Annuity Group, Inc. (11 percent owned). Following the sale of 4,400,000 shares of Penn Central common stock in the offering, AFEI will hold approximately 22 percent of Penn Central's common shares. AFEI's ownership of Penn Central will be reduced to 20.5 percent if the 660,000 share over- allotment option is exercised in full by the underwriters.
 AFEI's Common Stock trades on the Pacific and Midwest Stock Exchanges under the symbol "AFE".
 This announcement is neither an offer to sell nor a solicitation of an offer to buy the Penn Central securities. Any offer is made only by means of the Prospectus. Copies of the Prospectus may be obtained from the Prospectus Department of any of the managers.
 -0- 7/29/93
 /CONTACT: Sandra W. Heimann of American Financial Enterprises, Inc., 513-579-2121/
 (PC)


CO: American Financial Enterprises, Inc.; The Penn Central Corp. ST: Ohio IN: FIN SU: OFR

AR -- CL034 -- 7519 07/29/93 18:55 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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