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VALHI INC. ANNOUNCES COMPLETION OF SUBSIDIARY BANK CREDIT FACILITY

 DALLAS, July 19 /PRNewswire/ -- Valhi Inc. (NYSE: VHI) announced today that its wholly owned subsidiary, Medite Corp., had reached a definitive agreement on a $90 million credit facility with United States National Bank of Oregon, a unit of U.S. Bancorp, and that it expects to withdraw its Valcor Inc. subsidiary's registration statement on file with the Securities and Exchange Commission in connection with a proposed public offering of $125 million principal amount of Senior Notes due 2003.
 Medite's bank credit facility includes a $75,000,000 amortizing term loan with a final maturity of Sept. 30, 2000, secured by Medite's timber and timberlands; and a $15,000,000 revolving line of credit for operating capital due Sept. 30, 1995, secured by certain of Medite's working capital assets. The credit agreement provides that up to $60,000,000 of the term loan proceeds may be used by Medite to pay dividends to Valhi. Separately, Valhi announced today that it has called for early redemption, on Sept. 3, 1993, $85,280,000 principal amount of its 12 1/2 percent Senior Subordinated Notes due Feb. 15, 1998.
 In connection with the Medite bank financing Valcor Inc. distributed its non-forest products businesses, Sybra Inc. (fast food) and its Hardware Division (hardware products), to Valhi and changed its name from Valcor Inc. to Medite Corp. Medite Corp., which is, in terms of production capacity, the second-largest producer of medium-density fiberboard, and which owns 167,000 acres of timberland in Oregon, operates exclusively within the forest products industry. Medium- density fiberboard sold primarily under the brand names of Medite and Medex is produced by Medite Corp. at plants located in Medford, Ore., Las Vegas, New Mexico, and Clonmel, Republic of Ireland. Medite Corp. also produces and sells lumber, veneer, wood chips and logs produced from its facilities in Southern Oregon.
 As a result of the previously mentioned changes in corporate structure and the recently completed bank credit facility, Valhi expects to withdraw its Valcor Inc. subsidiary's registration statement filed with the Securities and Exchange Commission in connection with a proposed public offering of $125,000,000 principal amount of Senior Notes due 2003. Michael A. Snetzer, president of Valhi and chairman and chief executive officer of Medite Corp., said, "Medite's bank credit facility is, in our view, a more attractive alternative to the previously proposed Valcor Inc. Senior Note Offering. We will continue to explore, at Valhi, additional financing alternatives that would enable Valhi to complete an early redemption of the remaining $50,000,000 principal amount of Valhi's 12 1/2 percent Senior Subordinated Notes."
 Valhi, headquartered in Dallas, is a diversified company engaged in the refined sugar, forest products, fast food and hardware products industries. Valhi is also indirectly engaged in the chemicals and titanium metals industries through its equity interests in two publicly traded affiliates, NL Industries Inc. and Tremont Corp. Valhi's common stock is traded on the New York and Pacific Stock Exchanges under the symbol "VHI."
 -0- 7/19/93
 /CONTACT: William C. Timm, VP-finance and administration of Valhi, 214-450-4212/
 (VHI)


CO: Valhi Inc.; Medite Corp.; United States National Bank of Oregon;
 Valcor Inc. ST: Texas IN: PAP SU: FNC


LS-JL -- LA041 -- 3308 07/19/93 18:40 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
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