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DELPHI FINANCIAL GROUP, INC. ISSUES ANNOUNCEMENT REGARDING ISSUANCE OF $85 MILLION OF 8 PERCENT SENIOR NOTES DUE 2003

 WILMINGTON, Del., Oct. 5 /PRNewswire/ -- Delphi Financial Group, Inc. (NASDAQ: DLFI) today announced the issuance of $85 million of 8 percent Senior Notes due 2003, priced at 99.456 to yield 8.08 percent.
 Merrill Lynch & Co. is the managing underwriter for the offering. The offering is part of Delphi's previously announced recapitalization plan designed to increase shareholder's equity, reduce leverage, decrease interest expense and increase the liquidity of its Class A Common Stock.
 The Senior Notes are rated "BBB-" by Standard & Poor's and Fitch Investors Service, Inc. and are rated "Ba2" by Moody's Investors Service.
 Delphi will use the net proceeds of the $85 million Senior Notes offering, along with $30.8 million of net proceeds from its recently completed offering of Class A Common Stock, to redeem all $87.8 million of its 11-3/4 percent Senior Subordinated Debentures outstanding. The remaining proceeds will be used to reduce outstanding indebtedness under Delphi's bank credit agreement. On a pro forma basis, the recapitalization plan reduces Delphi's interest expense from approximately $20 million to $12 million annually.
 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 NASDAQ National Market System.
 /delval/
 -0- 10/5/93
 /CONTACT: Gerald R. Roop, Director, Finance, of Delphi Financial Group, 215-787-4274/
 (DLFI)


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

CC -- PH034 -- 9079 10/05/93 17:20 EDT
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Publication:PR Newswire
Date:Oct 5, 1993
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