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BURLINGTON ANNOUNCES SUCCESSFUL COMPLETION OF BOND REPURCHASES

    BURLINGTON ANNOUNCES SUCCESSFUL COMPLETION OF BOND REPURCHASES
    GREENSBORO, N.C., Nov. 6 /PRNewswire/ -- Burlington Industries Equity Inc. announced the successful completion of the debt repurchase phase of its previously-announced Capital Structure Plan.  A total of $192.7 million of public debt securities ($250.1 million principal amount at maturity) of Burlington Industries Capital Inc. and Burlington Holdings Inc., wholly-owned subsidiaries of Burlington Industries Equity Inc., were repurchased.  Such repurchases were made pursuant to tender offers concluded on Aug. 25, 1991 and in subsequent privately-negotiated purchase transactions.  The cash purchase price for such debt securities totaled $133.3 million.
    As a result of these debt securities repurchases, plus debt repurchases executed earlier in 1991, total public debt securities repurchased since Jan. 1, 1991 aggregated $238.7 million ($339.5 million principal amount at maturity).  After giving pro forma effect to such repurchases and to other components of the Capital Structure Plan (as if they had occurred on Nov. 1, 1991), interest expense for the twelve months ended Oct. 31, 1992 would be reduced by approximately $45.3 million.
    Burlington said that the Capital Structure Plan announced in July, 1991 has been completed.  Under the Plan, the following steps were taken:  (a) the Company sold its C.H. Masland & Sons business; (b) Burlington Holdings exchanged the entire outstanding principal amount of its Series A Junior Subordinated Discount Debentures Due 2002 for a new issue of Senior Debentures Due 2002 bearing a lower rate of interest; and (c) the Company incurred $70 million of borrowings under its existing Bank Credit Agreement and a new Term Loan Agreement to repurchase public debt securities.  Cash utilized in the repurchase of debt securities under the Plan was derived from the Masland sale and the bank borrowings noted above, plus $17 million of cash held by certain of the Company's foreign subsidiaries.
    Donald R. Hughes, Vice Chairman and Chief Financial Officer of the Company, commented, "We are very pleased that successful execution of the Plan and the other debt repurchase transactions have produced a significant reduction in indebtedness and interest expense."
    -0-                     11/6/91
    /CONTACT:  Dick Windham, Burlington Industries, Inc., 919-379-2303/ CO:  Burlington Industries Equity Inc. ST:  North Carolina IN:  TEX SU: DF -- CH005 -- 1706 11/06/91 12:22 EST
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Publication:PR Newswire
Date:Nov 6, 1991
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