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PRIMERICA COMPLETES EQUITY FINANCING FOR SHEARSON ACQUISITION

 NEW YORK, June 11 /PRNewswire/ -- Primerica Corporation (NYSE: PA) today announced the completion of the equity financing required for its pending acquisition of the domestic retail brokerage and asset management businesses of Shearson Lehman Brothers Inc.
 When the transaction was announced on March 12, 1993, Primerica reported that it anticipated that it would issue approximately $500 million in an equity equivalent security and $550 million in new debt securities to fund the transaction and strengthen the capital base of the company's Smith Barney subsidiary. Primerica will exceed this objective through:
 -- the issuance of approximately $300 million of common stock in April;
 -- the redemption of its 5-1/2 percent convertible debentures announced in May, which will result in the issuance of approximately $100 million in common equity; and
 -- the issuance, over the next seven months, of an amount estimated to be approximately $200 million of common stock to employees in connection with the company's regular stock-based compensation plans.
 Primerica has also raised $450 million of debt through a private placement of notes in April and a public offering of debentures in June. The company anticipates using internal funds or additional public or other borrowings to satisfy any remaining financing needs.
 In addition, Primerica's Smith Barney subsidiary has completed a series of transactions to fund the working capital needs of the merged firm and to replace current borrowings of the Shearson units being acquired. Smith Barney has:
 -- launched a $500 million commercial paper program, rated A-1/P-1/F-1 by Standard & Poor's, Moody's and Fitch, respectively;
 -- completed a private placement of $300 million of notes rated A-/A3/A+ by Standard & Poor's, Moody's and Fitch, respectively; and
 -- received firm commitments for a new $1.3 billion revolving bank credit facility.
 The transaction is scheduled to be completed in the third quarter of 1993.
 Primerica Corporation is a diversified financial services company with interests in investment banking and securities brokerage, mutual funds and asset management; consumer lending and credit cards; and life, specialty accident & health, and property & casualty insurance.
 -0- 6/11/93
 /CONTACT: Mary McDermott, 212-891-8870, or Barbara Yastine, 212-891-8872, both of Primerica/
 (PA)


CO: Primerica Corporation; Shearson Lehman Brothers Inc. ST: New York IN: FIN SU:

PS -- NY017 -- 0982 06/11/93 09:51 EST
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Publication:PR Newswire
Date:Jun 11, 1993
Words:373
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