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THE PRESLEY COMPANIES ANNOUNCES SALE OF BANK OF AMERICA LOAN AND RETENTION OF BEAR STEARNS AS FINANCIAL ADVISOR

 NEWPORT BEACH, Calif., Jan. 4 /PRNewswire/ -- The Presley Companies (NYSE: PDC) today announced that Foothill Capital Corp. and Pearl Street L.P. have acquired Bank of America's position in the company's $340 million secured revolving lending facility.
 Though the company did not release details of the sale, Wade Cable, Presley's president, said, "We are extremely pleased with this major step relating to our previously announced discussions regarding the restructuring of our debt and equity capitalization. With this sale, our revolving credit facility is now held entirely by non-commercial bank entities.
 "Moreover," Cable said, "discussions are continuing with our lenders, and while we can give no assurances that a financial restructuring will be achieved, the successful conclusion of the negotiations with Bank of America is a positive step forward."
 The Presley Companies also announced that it has retained Bear Stearns & Co. to act as its financial advisor. Additionally, the company announced that a special committee consisting of the four independent members of its board of directors, with the concurrence of the full board of directors, has been formed to review any proposed restructure or other change in the company's present equity and debt capitalization and has retained independent legal counsel to advise it in that regard. Bear Stearns will advise this committee as to the financial alternatives presently available to the company.
 The Presley Companies is one of California's oldest and largest homebuilders. It has operations in California, Arizona, and New Mexico, with 39 sales locations, including 28 in its master-planned communities and 11 at its other projects.
 -0- 1/4/94
 /CONTACT: Dave Siegel or Craig Manchester of The Presley Companies, 714-640-6400/
 (PDC)


CO: The Presley Companies; Bank of America; Bear, Stearns & Co. ST: California IN: CST SU: TNM

MF-JB -- LA011 -- 8784 01/04/94 09:02 EST
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Publication:PR Newswire
Date:Jan 4, 1994
Words:298
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