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KROGER SIGNS NEW CREDIT AGREEMENT

 KROGER SIGNS NEW CREDIT AGREEMENT
 CINCINNATI, Jan. 21 /PRNewswire/ -- The Kroger Co. (NYSE: KR) said


today it has signed a new credit agreement which extends the maturity on its senior bank debt by two years and enables the company to borrow an additional $500 million of senior secured financing under certain circumstances.
 Under terms of the new credit agreement, the maturity of Kroger's $1.45 billion senior bank facility has been extended from 1996 to 1998. The extended terms will free up approximately $50 million annually due to the extension of the amortization of the debt, and Kroger will use the additional cash to repurchase higher cost debt.
 Kroger said it will incur an extraordinary charge of approximately $15 million in the first quarter of 1992 reflecting the after-tax cost of the early retirement of the previous credit agreement. The first quarter extraordinary charge may increase if additional debt is repurchased, the company added.
 Kroger said its year-end bank debt, including borrowings under its working capital facility, was $935.5 million, and total debt, including capital leases, was $4.5 billion.
 First Chicago, Chemical Bank and Citicorp are Kroger's co-agent banks. The Industrial Bank of Japan served as the sole senior lead manager on the new facility, and will become a co-agent in any future refinancings.
 -0- 1/21/92
 /CONTACT: Paul Bernish (media), 513-762-1304; or Pam Taylor (investor), 513-762-4969; both of The Kroger Company/
 (KR) CO: The Kroger Company ST: Ohio IN: REA SU:


KK -- CL006 -- 1666 01/21/92 09:18 EST
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Publication:PR Newswire
Date:Jan 21, 1992
Words:254
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