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DELPHI FINANCIAL GROUP, INC. ANNOUNCES RECAPITALIZATION PLAN

 WILMINGTON, Del., July 9 /PRNewswire/ -- Delphi Financial Group, Inc. (NASDAQ: DLFI) today announced a recapitalization plan designed to increase shareholders' equity, reduce leverage, decrease interest expense and increase the liquidity of the Company's Class A Common Stock.
 In connection with the recapitalization plan, the Company has filed with the Securities and Exchange Commission registration statements relating to the proposed offerings of $85 million aggregate principal amount of Senior Notes due 2003 and 2,500,000 shares of Class A Common Stock, of which 1,000,000 shares are being sold by certain shareholders of the Company. Merrill Lynch & Co. will sole manage the Senior Notes offering and will lead the common stock offering along with Oppenheimer & Co., Inc. as co-manager. The Company will grant its underwriters an overallotment option for up to an additional 375,000 shares.
 The other elements in the plan include the $35 million increase in funds available under the Company's bank credit agreement, previously announced, and the planned redemption of all of the Company's outstanding 11-3/4 percent Subordinated Debentures due 1999. On a pro forma basis, the plan reduces the Company's interest expense from about $20 million to $12 million annually.
 Registration statements relating to these securities have been filed with the Securities and Exchange Commission but have not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statements become effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 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.
 Delphi Financial Group, Inc. is an insurance holding company that underwrites, nationally, through its principal subsidiary, Reliance Standard Life Insurance Company, a portfolio of life, long-term disability and personal accident insurance, targeted principally to the employee benefits market. It also operates an asset accumulation business, growing primarily through wholesale transactions and emphasizing intensive investment management. Delphi Financial Group, Inc.'s common stock (DLFI) is quoted through the NASDAQ National Market System.
 /delval/
 -0- 7/9/93
 /CONTACT: Gerald R. Roop, assistant vice president, Finance, of Delphi Financial Group, 215-787-4274/
 (DLFI)


CO: Delphi Financial Group, Inc. ST: Delaware IN: INS SU: RCN

CC -- PH027 -- 0064 07/09/93 16:49 EDT
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Publication:PR Newswire
Date:Jul 9, 1993
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