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Arvin to redeem its 7 1/2 percent convertible subordinated debentures due 2014.

COLUMBUS, Ind.--(BUSINESS WIRE)--Nov. 27, 1996--Arvin Industries Inc. (NYSE:ARV), today announced that it will redeem in full on Dec. 27, 1996, all of its then issued and outstanding 7 1/2 percent convertible subordinated debentures due Sept. 30, 2014, at a price equal to 102.25 percent of the principal amount plus accrued and unpaid interest to the redemption date.

Based on the current outstanding principal of debentures of $63.8 million, the company expects to record a pre-tax charge in its fourth quarter, 1996 results of approximately $1.5 million. The redemption of the debentures will be funded by the company's operating cash flow and its committed bank credit facilities.

Each debenture is convertible into common shares at a conversion price of $28.50 per common share, which is equivalent to a rate of 35 common shares for each $1,000 principal amount of debentures, plus a cash payment in lieu of any fractional share. This right to convert the debentures into common shares will expire at 5 p.m., Chicago time, on Dec. 27, 1996. Debenture holders who deliver their debentures for conversion prior to the close of business on Dec. 6, 1996, the record date for payment of a 19 cents per share dividend on the common shares, will be entitled to receive such cash dividend. No payment or adjustment in respect of interest accrued on the debentures will be made upon conversion.

Notice of the redemption and a transmittal form are being mailed to all holders of debentures on Nov. 27, 1996. The debentures may be surrendered for redemption or conversion to First Trust of Illinois, National Association, c/o First Trust, National Association, 180 East Fifth Street, 4th Floor -- Bond Drop Window, St. Paul, MN 55101.

Arvin Industries, Inc., is a global manufacturer of automotive components with 50 manufacturing facilities and eight technical centers located in 16 countries.

CONTACT: Arvin Industries Inc., Columbus

John Brown, 812/379-3389
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Publication:Business Wire
Date:Nov 27, 1996
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