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GLENDALE FEDERAL COMPLETES EXCHANGE OF BANK DEBT

 GLENDALE, Calif., March 10 /PRNewswire/ -- Glendale Federal Bank, the primary subsidiary of GLENFED Inc. (NYSE: GLN), announced today that it has completed an exchange offer for its publicly traded 14 7/8 percent capital notes due 1997. A total of $32.3 million in principal amount, or approximately 90.6 percent of the outstanding notes, were tendered and have been accepted by the bank. The holders of the tendered notes consented to six amendments to the indenture governing the remaining notes.
 The bank also announced that it had completed an exchange with the holders of $105 million of its privately placed subordinated debt. In each instance, the outstanding debt was exchanged for new 12 percent non-cumulative perpetual preferred stock of the bank. In addition, holders of the publicly traded notes will receive warrants to acquire approximately 2.65 percent of the bank's common stock.
 Stephen J. Trafton, chairman and chief executive officer of Glendale Federal, stated, "We are pleased to have completed the restructuring of the bank's outstanding subordinated indebtedness, which is a key element of the bank's plan to improve its regulatory capital position." As a result of the restructuring, the bank's core capital will be increased by approximately $130 million. On a pro forma basis at Dec. 31, 1992, after giving effect to the restructuring, the bank's regulatory capital ratios were 2.27 percent tangible capital, 3.30 percent core capital and 6.49 percent risk- based capital, compared to the respective regulatory requirements under the Financial Institutions Reform Recovery and Enforcement Act of 1989 (FIRREA) of 1.50 percent, 3.00 percent and 8.00 percent. On a pro forma basis at Jan. 1, 1993, after giving effect to certain regulatory phaseouts that became effective on that date as well as to the effect of the restructuring, the capital ratios were 2.21 percent, 2.99 percent and 6.00 percent, respectively.
 The bank is currently subject to a prompt corrective action directive issued by the Office of Thrift Supervision (OTS) that, among other things, directs the bank to achieve a 5 percent core capital ratio and a 10 percent risk-based capital ratio by June 30, 1993. "Given the major step taken by the bank and its subordinated debtholders today to improve Glendale Federal's capital position, and the bank's continued pursuit of other options for obtaining additional capital, we believe Glendale Federal is doing all it reasonably can to reach the capital ratios required by the OTS," Trafton said. Among the options being pursued by the bank for obtaining additional capital is a favorable resolution of its pending litigation against the U.S. Government for damages resulting from the adoption of FIRREA and certain regulatory actions taken under FIRREA.
 Glendale Federal Bank is the nation's fifth largest savings bank. It provides community banking services through 215 banking offices in California, Florida and Washington State.
 -0- 3/10/93
 /CONTACT: Judy Cunningham, 818-500-2274, or Jeff Misakian, 818-500-2824, both of Glendale Federal Bank/
 (GLN)


CO: Glendale Federal Bank; GLENFED Inc. ST: California IN: FIN SU: RCN

LS -- LA030 -- 4889 03/10/93 19:14 EST
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Publication:PR Newswire
Date:Mar 10, 1993
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