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AMERICAN INCOME HOLDING, INC. COMPLETES RECAPITALIZATION

 AMERICAN INCOME HOLDING, INC. COMPLETES RECAPITALIZATION
 WACO, Texas, March 25 /PRNewswire/ -- American Income Holding, Inc. (NYSE: AIH) has completed its previously announced recapitalization program, which was contingent upon the closing of the company's initial public offering of common stock. The net proceeds from the sale of the common stock, together with $105.0 million in new bank debt have been used to retire the indebtedness outstanding under the pre-existing credit agreement and to repay in full the 13.25 percent subordinated notes. As a result, the company's weighted average effective interest rate has been reduced from 8.35 percent immediately preceding the recapitalization to 6.23 percent at present. In addition, concurrent with the offering, the company's 15 percent redeemable preferred stock was converted into common stock at the public offering price.
 As previously disclosed in the initial public offering prospectus, the completion of the recapitalization program will result in a nonrecurring extraordinary charge in the quarter ended March 31, 1992, of $4.9 million or $.39 per share (net of income taxes of $2.5 million, $.20 per share) consisting of the write-off of costs capitalized in 1989 related to the pre-existing bank credit agreement and the pre-payment premium on the 13.25 percent subordinated notes.
 American Income Holding, Inc. is an insurance holding company engaged through its subsidiary, American Income Life Insurance Company, in the marketing, writing and issuing of individual supplemental life insurance and fixed benefit accident and health insurance to members of labor unions and credit unions in the United States and Canada.
 -0- 3/25/92
 /CONTACT: Mark E. Pape, chief financial officer of American Income Holding, Inc., 817-751-8650/
 (AIH) CO: American Income Holding Inc. ST: Texas IN: FIN SU: RCN


AH -- NY060 -- 1615 03/25/92 15:20 EST
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Publication:PR Newswire
Date:Mar 25, 1992
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