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MARGARETTEN FINANCIAL CORPORATION COMPLETES REFINANCING OF BANK CREDIT FACILITIES

 PERTH AMBOY, N.J., July 26 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today announced that it recently completed the refinancing of two bank credit line facilities. As a result of the refinancings, the company has increased its borrowing capacity, enhanced its financial flexibility and lowered its effective cost of borrowing.
 The company's mortgage banking subsidiary, Margaretten & Co., closed a $555 million mortgage warehouse revolving credit facility on June 21, 1993, thereby replacing a $374 million credit facility. The new warehouse credit facility will be utilized to finance mortgage loans pending their sale in the secondary market and augments the company's existing commercial paper program of $630 million. The Chase Manhattan Bank, N.A. acted as managing agent and Chemical Bank acted as co-agent of the 31-bank syndicate which participated in the revolving credit facility.
 "We are very pleased with our expanded warehouse credit facility. This new arrangement will facilitate the growth of our mortgage operations and reduce our effective cost of borrowing through an innovative use of escrow balances," commented David A. Frank, president of Margaretten Financial Corporation.
 Margaretten also announced that it completed the refinancing of its term and revolving credit facility on June 18, 1993, with the First National Bank of Chicago acting as agent for the six-bank syndicate. Under the terms of the refinancing, the company repaid a $68 million term loan and increased the revolving credit line to $50 million from $14 million. The proceeds of the original term loan were used as part of the acquisition financing for Margaretten Financial Corporation's purchased of NationsBanc Mortgage Corporation of Virginia in September 1992.
 Margaretten Financial Corporation, through its mortgage banking subsidiary, Margaretten & Company, engages in the origination, purchase, sale and servicing of residential mortgage loans. Its retail division maintains 64 branches and satellite offices in 18 states, and its wholesale division operates primarily in California, the Pacific Northwest, Texas, Arizona and Georgia.
 -0- 7/26/93
 /CONTACT: Edward Nebb or Jeff Majtyka of Morgen-Walke Associates, 212-850-5600, for Margaretten Financial Corporation/
 (MRG)


CO: Margaretten Financial Corporation ST: New Jersey IN: FIN SU:

SM-MP -- NY021 -- 5587 07/26/93 10:10 EDT
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Publication:PR Newswire
Date:Jul 26, 1993
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