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VOLT INFORMATION SCIENCES, INC. CALLS FOR REDEMPTION OF DEBENTURES

 NEW YORK, Oct. 7 /PRNewswire/ -- Volt Information Sciences, Inc. (NASDAQ: VOLT) announced today that it has called for the redemption on Nov. 8, 1993 of $20 million of its 12-3/8 percent senior subordinated debentures, due July 1, 1998, at par plus accrued interest. Debentures to be redeemed will be selected by lot by BankAmerica Trust Company of New York, trustee for the debentures. After giving effect to the redemption, $42,855,000 of the debentures will remain outstanding.
 William Shaw, president and chairman of Volt, said that the financing for the redemption has been provided through the sale of $25 million of Volt receivables under a three-year revolving financing arrangement completed today. The agreement is subject to earlier termination on six month's notice. The receivables are being sold to Omnibus Funding Corporation and will be used as collateral for the issuance by Omnibus of short-term commercial paper notes. Proceeds not used to redeem debentures will be used to pay expenses of the financing and for general corporate purposes.
 Mr. Shaw noted that the annual cost of the new financing, including related costs amortized over the term of the facility, based on today's commercial paper rates, will be approximately 6 percent, resulting in a material reduction in Volt's interest expense. In addition, the redeemed debentures will be used to satisfy most of the $22,860,000 debenture sinking fund payments required over the next 4 years.
 The receivables sold represent approximately 28 percent of Volt's total trade receivables and, under the terms of the agreement, Omnibus will also require a security interest in approximately $8 million of additional Volt receivables.
 Chemical Securities Inc. acted as referral agent for the transaction.
 Volt Information Sciences, Inc. is a diversified technical services, human resources, computer systems and electronics manufacturing corporation.
 -0- 10/7/93
 /CONTACT: James J. Groberg of Volt Information Sciences, Inc., 212-704-2480/
 (VOLT)


CO: Volt Information Sciences, Inc. ST: New York IN: CPR SU: OFR

TS-OS -- NY061 -- 9838 10/07/93 15:14 EDT
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Publication:PR Newswire
Date:Oct 7, 1993
Words:333
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