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KAISER ALUMINUM TO REFINANCE BANK CREDIT AGREEMENT

 HOUSTON, Nov. 9 /PRNewswire/ -- Kaiser Aluminum Corp. (NYSE: KLU) said today that its operating subsidiary, Kaiser Aluminum & Chemical Corp. (KACC), has signed a commitment letter with Bank of America National Trust and Savings Association and BankAmerica Business Credit Inc. to refinance KACC's existing bank credit agreement.
 The proposed new credit agreement would provide KACC with a five- year, secured, revolving working capital line of credit of $300 million, governed by a borrowing base consisting of eligible inventory and eligible receivables. It would replace an existing bank credit agreement with Bank of America and other lenders, which would expire on Nov. 30, 1994. As of Sept. 30, 1993, $148.9 million of borrowing capacity was unused under the revolving credit facility of the existing credit agreement.
 The commitment letter calls for the Bank of America institutions to provide $150 million of the financing directly and to form a syndicate of commercial banks or other financial institutions to provide the remaining $150 million of the financing. KACC and the Bank of America institutions are in active discussions with other lenders regarding the formation of this syndicate. Borrowings incurred under the new agreement would be guaranteed by Kaiser Aluminum Corp. and by certain significant subsidiaries of KACC and would be secured by security interests in assets of KACC and certain of its subsidiaries, substantially similar to the security arrangements in effect in respect of the existing credit agreement.
 The commitment letter is subject to customary conditions, including the negotiation, preparation, and execution of satisfactory credit and security agreements, and to a liquidity requirement. In order to satisfy this requirement, KACC may offer up to $150 million aggregate principal amount of its senior notes (on terms to be determined at the time of sale) pursuant to a registration statement previously filed with the Securities and Exchange Commission.
 Kaiser Aluminum Corp., through KACC, is a leading producer of alumina, primary aluminum, and fabricated aluminum products, and is a major supplier of alumina and primary aluminum in the domestic and international markets. MAXXAM Inc. (AMEX: MXM) holds approximately 68 percent of the voting stock of Kaiser.
 -0- 11/9/93
 /CONTACT: Scott Lamb of Kaiser Aluminum, 713-267-3826/
 (KLU MXM)


CO: Kaiser Aluminum Corp.; Kaiser Aluminum & Chemical Corp.; MAXXAM
 Inc. ST: California, Texas IN: MNG SU: FNC


TM -- SF006 -- 2072 11/09/93 08:44 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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