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SOUTHDOWN COMPLETES $125 MILLION NOTE OFFERING; PROCEEDS TO PAY OFF SERIES B NOTES IN FULL AND A PORTION OF BANK DEBT

      SOUTHDOWN COMPLETES $125 MILLION NOTE OFFERING; PROCEEDS TO
       PAY OFF SERIES B NOTES IN FULL AND A PORTION OF BANK DEBT
    HOUSTON, Nov. 1 /PRNewswire/ -- Southdown, Inc. (NYSE: SDW) announced the successful completion of its offering of $125 million senior subordinated notes with warrants to purchase the company's common stock.  The net proceeds have been used to pay down the Series B Senior Secured Notes in full and to reduce a portion of the loans outstanding under the company's revolving credit facility. With the application of the proceeds, the company now has over $120 million of unused capacity under its revolving credit facility, which will be more than adequate to meet the company's operating and capital needs through 1992 based on management's outlook for next year.  Kidder, Peabody & Co. Incorporated and Southcoast Capital Corporation acted as co-agents for the offering.
    The notes have an interest rate of 14 percent, will mature in 2001 and have no required principal payments prior to maturity. The offering also includes 1,250,000 of five year warrants (10 warrants per $1,000 principal amount of notes) to purchase the company's common stock at an exercise price of $16 per share.
    As a result of having increased the amount of the offering from $100 million to $125 million, the company has reduced the total bank commitment under the revolving credit facility from $273 million to $250 million.  In addition, an additional bank has been added to the bank group, and at the request of the company, the banks have amended what the company believes to be the most restrictive covenant ratios in its credit agreement in order to provide the company with more flexibility through mid-1993.
    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 has entered the environmental services business and is engaged in waste processing, recycling and resource recovery.
    -0-          11/1/91
    /CONTACT:  James L. Persky, or Karen A. Twitchell of Southdown, 713-650-6200/
    (SDW) CO:  Southdown Inc. ST:  Texas IN:  CST SU:  OFR SH -- NY033 -- 0176 11/01/91 11:20 EST
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Publication:PR Newswire
Date:Nov 1, 1991
Words:368
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