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PRIMERICA CORP., AFFILIATES 'A+' SENIOR DEBT AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 12 /PRNewswire/ -- Primerica Corp.'s A+' senior debt and F-1' commercial paper are affirmed by Fitch following the announcement of Primerica's planned acquisition of the Shearson Lehman Brothers, Inc. retail brokerage and asset management operations. The A+' senior debt and F-1' commercial paper ratings of Commercial Credit Corp. are also affirmed. The credit trend remains improving.
 The ratings are affirmed because of the transaction's structure and the prudent way that it will be financed. Through Smith Barney, Primerica will be acquiring an extensive retail franchise, with protection against litigation and other contingent liabilities. There will be some expense cutting opportunities, but even stronger revenue enhancement as Smith Barney's pool of account executives will grow from 2,500 to over 11,000.
 To finance the $1 billion acquisition and bolster the capital of Smith Barney, Primerica will issue approximately $550 million of debt securities and approximately $500 million of equity-equivalent securities. Additionally, Primerica will issue $150 million of convertible preferred stock and common equity warrants to American Express. As a result, the purchase will be accommodated without sacrificing the strong balance sheet that Primerica has built over the past several years. On a pro forma basis, preferred will represent about 15 percent of the total capital structure, and the ratio of debt/total capitalization will remain under 20 percent.
 -0- 3/12/93
 /CONTACT: Nancy E. Stroker, 212-908-0533, or Lygia X. Campbell, 212-908-0695, both of Fitch/
 (PA)


CO: Primerica Corp. ST: New York IN: FIN SU: RTG

CK -- NY019 -- 5446 03/12/93 10:32 EST
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Publication:PR Newswire
Date:Mar 12, 1993
Words:258
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