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BUFFTON ANNOUNCES SALE OF SUBSIDIARY AND REFINANCING OF BANK DEBT

 BUFFTON ANNOUNCES SALE OF SUBSIDIARY AND REFINANCING OF BANK DEBT
 FORT WORTH, Texas, Feb. 17 /PRNewswire/ -- Robert H. McLean, chairman of the board and president of Buffton Corporation (AMEX: BFX), announced today the signing of an agreement to sell B&D Instruments and Avionics, Inc. The sale is scheduled to be consummated on Feb. 28, 1992. The purchaser of B&D Instruments is a substantial publicly-held corporation headquartered in the United Kingdom. The cash proceeds from the sale of B&D Instruments will be used to reduce the company's debt with The First National Bank of Boston. Remaining bank debt will be approximately $8.2 million.
 In addition to the announcement of the sale, McLean announced a commitment from Congress Financial Corporation to pay off and refinance the company's bank debt with the Bank of Boston following the closing of the sale of B&D.
 McLean stated, "The commitment with Congress Financial Corporation is for three years. The total commitment is $10 million, consisting of a $7 million revolving line of credit and a $3 million term note. The loan commitment provides for interest at 2-1/2 percent above the prime rate and is secured by the assets of the company and its subsidiaries."
 McLean added, "We recently reported operating profits for our first quarter and anticipate an operating profit for our second quarter which will end March 3,1 1992. However, the purchase price for B&D Instruments is $3.6 million below book value and, as a result, we will report a loss for the quarter and six months ended March 31, 1992."
 Buffton Corporation is a diversified group of companies engaged in the manufacture of avionic, electronic and plastic products.
 -0- 2/17/92
 /CONTACT: Robert Korman, vice president and chief financial officer of Buffton, 817-332-4761/
 (BFX) CO: Buffton Corporation ST: Texas IN: ARO SU: FNC


SH -- NY025 -- 0582 02/17/92 14:42 EST
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Publication:PR Newswire
Date:Feb 17, 1992
Words:318
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