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PRUDENTIAL HOME MORTGAGE CLOSES $1.1 BILLION UNSECURED WAREHOUSE LINE

 CLAYTON, Mo., June 30 /PRNewswire/ -- Prudential Home Mortgage, one of the nation's largest residential mortgage originators, announced today that it has obtained a $1.1 billion, unsecured, warehouse revolving line of credit from a group of seven lead banks.
 The bank group includes ABN Amro, Bankers Trust, Barclays, Chemical, Credit Lyonnais, NationsBank and Union Bank of Switzerland. The transaction, which was oversubscribed, has been syndicated to 13 international and domestic banks.
 "To our knowledge, this is the largest unsecured line of credit ever obtained by an unrated company," said Ronald Gaither, treasurer of Prudential Home Mortgage. "The interest in this transaction demonstrates the market's confidence in the financial strength of Prudential Home Mortgage and the liquidity of our mortgage-backed securities. It also reflects an appreciation of our parent company's commitment to us, and to the residential mortgage business in general. This bank group is extremely knowledgeable about the mortgage industry, so we are particularly pleased with its confidence in our management team, our operating strategies and our prospects for future performance.
 "The new line significantly enhances our financial flexibility. It will enable us to introduce new programs and to continue to grow originations. The broad representation of international banks in our syndicate dovetails well with our international sales of mortgage-backed securities," Gaither said. "Finally, with this transaction, we are also beginning to position Prudential Home Mortgage to access the public debt markets."
 In 1992, Prudential Home Mortgage was the second-largest originator in the United States, producing $28.5 billion in mortgages, and it was the largest issuer of private mortgage-backed securities. Prudential Home Mortgage's servicing portfolio currently exceeds $50 billion.
 Until this transaction, Prudential Home Mortgage has funded its short-term financing needs by selling mortgage securities, borrowing from its parent, and through repurchase agreements with Wall Street investment houses.
 Prudential Home Mortgage is a subsidiary of Residential Services Corporation of America, a unit of The Prudential Insurance Company of America. Both PHM and RSCA are headquartered in Clayton, a suburb of St. Louis. PHM has major offices in Costa Mesa, Calif.; Edison, N.J.; Frederick, Md.; Minneapolis; and Springfield, Ill.
 -0- 6/30/93
 /CONTACT: William F. Campbell of GCI Corporate & Financial, 212-546-2664, for Prudential Home Mortgage/


CO: Prudential Home Mortgage; The Prudential Insurance Company of
 America ST: Missouri IN: SU:


CK-WB -- NY024 -- 7085 06/30/93 10:57 EDT
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Publication:PR Newswire
Date:Jun 30, 1993
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