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SOUTHDOWN AMENDS BANK CREDIT AGREEMENT TO IMPROVE FINANCIAL FLEXIBILITY

 HOUSTON, Dec. 21 /PRNewswire/ -- Southdown, Inc. (NYSE: SDW) has successfully negotiated an amendment to its bank credit facility which provides the company greater flexibility under the financial covenants contained in the agreement. In addition, the borrowing rates and other fees will increase by 50 basis points and the size of the facility will be reduced by $50 million to $200 million.
 Based on the company's outlook for 1993, management believes that the amended covenants provide sufficient flexibility for the company to operate in compliance with the agreement during the next 12 months. Because the company's revolving credit facility converts into a term loan in early 1994, the company believes that the terms of the credit facility, including the financial covenants, will be renegotiated by the end of 1993. As previously reported, without this amendment Southdown would have failed to meet one or more of the financial covenants in its credit agreement by the end of 1992. The reduction in the size of the facility is not expected to adversely impact the company's liquidity. The company currently has $78 million of unused borrowing capacity under the amended $200 million facility.
 Southdown is one of the leading U.S. cement and ready-mixed concrete companies. The company manufactures cement in eight plant locations around the country and markets ready-mixed concrete in Florida and southern California. In addition, the company is engaged in the environmental services business, including waste processing, recycling and resource recovery.
 -0- 12/21/92
 /CONTACT: James L. Persky or Karen A. Twitchell of Southdown, Inc., 713-650-6200/
 (SDW)


CO: Southdown, Inc. ST: Texas IN: CST SU: FNC

PS -- NY013 -- 8669 12/21/92 09:35 EST
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Publication:PR Newswire
Date:Dec 21, 1992
Words:275
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