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FAIRCHILD ANNOUNCES SUCCESSFUL COMPLETION OF NOTE PLACEMENT

 FAIRCHILD ANNOUNCES SUCCESSFUL COMPLETION OF NOTE PLACEMENT
 CHANTILLY, Va., Aug. 5 /PRNewswire/ -- The Fairchild Corporation (NYSE: FA) today announced that its subsidiary, Fairchild Industries, Inc., has successfully completed a public offering of $125 million of 12-1/4 percent senior secured notes due 1999. This placement is a major component of a broad recapitalization plan designed to improve financial and operating flexibility and strengthen the overall financial position of the Fairchild Group.
 In addition to the $125 million note offering, the recapitalization plan of Fairchild Industries includes an extension of maturities of a substantial portion of bank debt and a recently commenced exchange offer for a part of its Series A preferred stock. The plan will also make $45 million of cash available to the parent company to service or retire debt.
 Fairchild believes that the recapitalization will enhance its overall strategy to improve the performance and increase the value of its core businesses and strengthen Fairchild's positions of market leadership in the industries it serves. Fairchild's subsidiary, VSI Corporation, currently maintains leading worldwide positions in the manufacture of aerospace fasteners and tooling/electronic controls for the plastics injection molding industry. Another subsidiary, Fairchild Communications Services Company, formed just seven years ago, is the largest provider of private centralized telecommunications services for commercial office buildings.
 In addition, Fairchild has substantial equity positions in two other enterprises which are also industry leaders -- Rexnord Corporation and Banner Aerospace, Inc. Rexnord, the world's leading manufacturer of mechanical power transmission components for a number of industries, recently completed its own recapitalization plan which included an initial public offering of common stock and the redemption of $250 million of 13-5/8 percent debt. After the IPO, Fairchild owns approximately 45 percent of Rexnord's common stock, which has an imputed market value of approximately $140 million based on current market prices (NYSE: REX). The market value is about $80 million higher than the carrying value of this investment on the books of Fairchild. Banner Aerospace, Inc., publicly traded (NYSE: BAR) and the world's leading distributor of aviation replacement parts, is owned 47.2 percent by Fairchild.
 Although the effects of the recession were felt by Fairchild during its just ended fiscal year, Fairchild reported improvement in operating profits during the third quarter. Fourth quarter trends are encouraging, including a significant upturn in D-M-E Company's tooling business and continued strong performance in the telecommunications service business. In the aerospace fasteners operation, significant cost reduction programs have been implemented and productivity efforts have been strengthened.
 Jeffrey Steiner, chairman and chief executive officer of the Fairchild Corporation, commented, "The combined effect of the Fairchild Industries and Rexnord recapitalization plans will be to open new doors of opportunity, improve financial and operating flexibility and provide the foundation for new growth and a stronger Fairchild group of companies."
 -0- 8/5/92
 /CONTACT: John D. Jackson of Fairchild, 703-478-5872/
 (FA) CO: The Fairchild Corporation; Fairchild Industries, Inc. ST: Virginia IN: ARO SU:


GK-SB -- NY065 -- 7192 08/05/92 15:03 EDT
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Publication:PR Newswire
Date:Aug 5, 1992
Words:499
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