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ITEL TO OFFER NEW DEBT ISSUE

 ITEL TO OFFER NEW DEBT ISSUE
 CHICAGO, Dec. 31 /PRNewswire/ -- Itel Corp. (NYSE: ITL) today


announced it has formed a trust to make a public offering of new debt to be funded from the future cash flow of the rail car fleet of Itel's subsidiary, Itel Rail Corp. The amount of debt to be offered depends upon interest rates, and the extent to which certain existing creditors of the rail car fleet elect to continue their loans or to be paid with the proceeds of the new debt. The offering could be in excess of $1.1 billion.
 The interest and principal of the new debt, as well as any existing debt on the fleet which is not pre-paid, will be paid from proceeds of rent of approximately $150 million a year from the lease of Itel Rail's existing rail car fleet to General Electric Railcar Leasing Services Corp., a wholly owned subsidiary of General Electric Capital Corp. The lease will be for 12 years, and at its expiration GE Railcar will have the option to purchase the fleet for approximately $500 million. The lease will also provide for the sharing of certain results generated by the fleet above current levels.
 The debt offering and lease execution are subject to conditions and requirements including completion of the SEC registration process, the ability to place the new debt within a specified interest limit and to align the new debt with the existing debt of the fleet, and the consent of a majority of Itel's shareholders. There can be no assurance that these transactions will be completed.
 The new debt will be issued by an Itel trust which will operate through a partnership. The partnership will include rail cars from GE Railcar Services and the leased rail car fleet of Itel Rail.
 The proceeds of the new debt will be distributed by the trust. "These proceeds will be used to reduce existing higher cost debt on both the rail car fleet and other debt of Itel Corp., as well as for general corporate purposes," said Rod Dammeyer, president of Itel Corp.
 Itel Corp. owns Anixter, a leading supplier of wiring systems products for cable television, voice and data communications and the industrial electrical cable markets, and has equity interests in other businesses.
 -0- 12/31/91
 /NOTE TO EDITORS: These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes 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 these securities in any state in which such offer, solicitation or sale would be unlawful./
 /CONTACT: Gloria Waber of Itel, 312-902-1515/
 (ITL) CO: Itel Corp. ST: Illinois IN: TRN SU: OFR


GK -- NY008 -- 5819 12/31/91 09:30 EST
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Publication:PR Newswire
Date:Dec 31, 1991
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