Printer Friendly

FEDERAL-MOGUL ISSUES AAA-RATED ASSET-BACKED SECURITIES

 FEDERAL-MOGUL ISSUES AAA-RATED ASSET-BACKED SECURITIES
 SOUTHFIELD, Mich., June 25 /PRNewswire/ -- Dennis J. Gormley,
 chairman and chief executive officer of Federal-Mogul Corporation
 (NYSE: FMO), today announced the completion of a trade receivables
 securitization totaling $55 million. The issue was increased in size
 from the $50 million originally offered.
 The securities are AAA rated by Standard & Poor's. They carry a
 7.55-percent coupon rate and a five-year maturity, and were privately
 placed by The First Boston Corporation, Gormley explained.
 "This funding is significantly below Federal-Mogul's current cost of
 capital," said Martin E. Welch III, the company's senior vice president
 and chief financial officer. "Proceeds will be used to repay a
 deutschemark denominated term loan currently carrying an 11-percent
 interest rate.
 "At current German interest and exchange rates, we will save
 approximately $2 million in interest expense per year," Welch continued.
 "This action is in line with our strategy to reduce costs and continue
 strengthening the company's financial position."
 Headquartered in Southfield, Federal-Mogul operates 34 plants, more
 than 70 distribution centers and four major research centers around the
 world. Its products include a variety of precision parts for the
 transportation, farm equipment, construction and manufacturing
 industries.
 -0- 6/25/92
 /CONTACT: Mike Viola of Federal-Mogul Corporation, 313-354-8664/
 (FMO)
 CO: Federal-Mogul Corporation
 ST: Michigan
 IN: AUT
 SU:


SB -- DE019 -- 3786 06/25/92 12:44 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 25, 1992
Words:222
Previous Article:COLONIAL HIGH INCOME MUNICIPAL TRUST SECOND QUARTER EARNINGS
Next Article:AER LINGUS REPORTS DISAPPOINTING RESULTS FOR ITS AIR TRANSPORT DIVISION
Topics:


Related Articles
FEDERAL-MOGUL PROVIDES ADDITIONAL INFORMATION RELATING TO ITS ACQUISITION OF TRW's AUTOMOTIVE AFTERMARKET BUSINESS
FEDERAL-MOGUL ISSUES A SECOND SERIES OF AAA-RATED ASSET-BACKED SECURITIES
DUFF & PHELPS RATES PREMIER AUTO TRUST 1994-3
DUFF & PHELPS: PREMIER AUTO TRUST 1994-4 $341,250,000 CLASS A-2 5.75 PERCENT ASSET BACKED NOTES, RATED 'AAA'
STUDENT LOAN FUNDING CORP. $50 MILLION SENIOR SERIES RATED 1995A-1 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
Federal-Mogul Financing Trust Preferred Securities Rated B+, on S&PWatch Neg
Federal-Mogul Reports $500 Million Private Issue Of Convertible Preferred Securities
Federal-Mogul Announces Filing of Shelf Registration Statement With Securities and Exchange Commission
SLM Funding Corporation, Wholly Owned Subsidiary of SLM Holding Corporation, Receives Favorable Risk Weight Treatment for its Asset-Backed Securities.
New York Mortgage Trust Completes $274.6 Million Loan Securitization Representing the Company's First Securitization of High-Credit Quality ARM Loans...

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters