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BURLINGTON ANNOUNCES IPO AS PART OF COMPREHENSIVE RECAPITALIZATION

BURLINGTON ANNOUNCES IPO AS PART OF COMPREHENSIVE RECAPITALIZATION
 GREENSBORO, N.C., Jan. 20 /PRNewswire/ -- Burlington Industries Equity Inc. announced today a proposed initial public offering as part of a recapitalization plan that would include the refinancing or retirement of all its outstanding high-yield debt securities.
 The company said it has filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 57 million shares of its common stock. The company estimates that the initial public offering price will be in the range of $14 to $16 per share. All the common stock is being offered by the company; existing shareholders will not be selling shares in the offering.
 The offering will be managed by Morgan Stanley & Co. Incorporated; Donaldson, Lufkin & Jenrette Securities Corporation; The First Boston Corporation; and Kidder, Peabody & Co. Incorporated.
 The company said it has obtained commitments from Chemical Bank, Bankers Trust Company, The Bank of Nova Scotia and NationsBank of North Carolina, N.A. for $1.0 billion of a proposed $1.25 billion bank facility for the transaction. The commitments are subject to customary conditions.
 Under the recapitalization plan, the company would use the net proceeds of the proposed offering and funds available under the proposed bank financing as follows:
 (1) To repurchase all $323.7 million ($395.9 million principal amount at maturity) of its Senior Debentures Due 2002 and its 13.875 percent Series A Senior Subordinated Notes Due 1996 pursuant to an agreement with The Equitable Life Assurance Society of the United States and certain of its affiliates;
 (2) To make tender offers for all $535.5 million ($625.4 million principal amount at maturity) of its 13.875 percent Series B Senior Subordinated Notes Due 1996, 14.25 percent Subordinated Debentures Due 1999, Series B Junior Subordinated Discount Debentures Due 2003 and 16.875 percent Senior Discount Debentures Due 2004;
 (3) To redeem all $99.5 million principal amount of its Senior Floating Rate Notes Due 1999; and
 (4) To refinance all its existing bank debt.
 The company said that, in connection with the plan, it intends to contribute $99.5 million to the Burlington Industries, Inc. Employee Stock Ownership Plan Trust to enable the Trust to prepay the remainder of a loan incurred in 1989 to acquire an equity interest in the company.
 The company also said that, as part of the plan, it would exchange 7,722,038 shares of its 9.5 percent Preferred Stock, held by Morgan Stanley Group Inc. and Bankers Trust New York Corporation, for 3,534,395 shares of its common stock.
 Burlington Industries Equity Inc. is the parent company of Burlington Industries, Inc. (headquartered in Greensboro, N.C.), one of the largest and most diversified manufacturers of textile products in the world.
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 A registration statement relating to the common stock 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 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.
 A copy of the registration statement containing the preliminary prospectus relating to the common stock may be obtained by contacting Burlington Industries Equity Inc., 3330 West Friendly Avenue, Greensboro, N.C. 27410; Attention: Treasurer's Department, telephone 919-379-2515.
 -0- 1/20/92
 /CONTACT: Tom Daly of Kekst & Company, 212-593-2655, or Dick Windham, 919-379-2303, or Bryant Haskins, 919-379-2512, both of Burlington Industries, Inc./ CO: Burlington Industries Equity Inc.; Burlington Industries, Inc. ST: North Carolina IN: TEX SU: RCN


CM -- CH001 -- 1309 01/20/92 09:03 EST
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Publication:PR Newswire
Date:Jan 20, 1992
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