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RELIANCE COMPLETES PUBLIC OFFERING OF COMMON STOCK AND DEBT

 NEW YORK, Nov. 15 /PRNewswire/ -- Reliance Group Holdings, Inc. (NYSE: REL) today announced that it has completed the simultaneous public offering of 25 million shares of its common stock and $650 million principal amount of notes and debentures, under terms previously disclosed. In addition, Reliance said its subsidiary, Reliance Financial Services Corporation, has entered into a new $175 million bank credit facility.
 The common stock was sold to the public at a price of $8.00 per share. The debt offering consisted of $400 million principal amount of 9.0 percent Senior Notes, due 2000; and $250 million principal amount of 9.75 percent Senior Subordinated Debentures, due 2003. Both issues were priced at 100 percent of their principal amount.
 Net proceeds to Reliance from the public offerings totaled $821.5 million, which, combined with $95 million in borrowings under the new credit facility, will be used to repay existing bank borrowings and redeem existing public debt of the company and its subsidiaries, Reliance Group, Incorporated and Reliance Financial Services Corporation. Reliance said it intends to leave outstanding the $100 million principal amount of Senior Reset Notes, due 2000, of Reliance Financial Services. All other public debt will be redeemed on or about Dec. 16, 1993. Notices of redemption are expected to be mailed today to bondholders, Reliance said.
 "The offerings significantly reduced balance sheet leverage and lowered the company's interest expense by about $20 million annually," commented Saul P. Steinberg, chairman and chief executive officer of Reliance Group. "The completion of this capital raising and refinancing plan, along with the recent sales of non-core businesses and the realignment of our insurance operations, position us very well for future profitable growth," he added.
 Headquartered in New York City, Reliance's principal operations are in property and casualty insurance and title insurance. Its four principal property and casualty operations are Reliance National, Reliance Insurance, Reliance Reinsurance and Reliance Surety. Its title business consists of Commonwealth Land Title Insurance Company and Transamerica Title Insurance Company. Reliance's revenues totaled $2.76 billion in 1992 and consolidated assets at year-end were $8.19 billion.
 -0- 11/15/93
 /CONTACT: Brian T. Martin, vice president - communications of Reliance Group Holdings, Inc., 212-909-1247/
 (REL)


CO: Reliance Group Holdings, Inc. ST: New York IN: INS SU: OFR

MP -- NY123 -- 4619 11/15/93 15:55 EST
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Publication:PR Newswire
Date:Nov 15, 1993
Words:388
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