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WARNACO GROUP ANNOUNCES UNDERWRITING OF COMMON STOCK AS PART OF COMPREHENSIVE RECAPITALIZATION

 WARNACO GROUP ANNOUNCES UNDERWRITING OF COMMON STOCK
 AS PART OF COMPREHENSIVE RECAPITALIZATION
 NEW YORK, March 27 /PRNewswire/ -- The Warnaco Group, Inc. (NYSE: WAC), today announced an underwriting of five million shares of common stock at a price of $34.50 per share pursuant to a registration statement declared effective today.
 On a pro forma basis for 1991, the company's recapitalization would have been antidilutive to earnings per share since it would have substantially lowered the company's interest expense and eliminated the company's preferred stock dividend payments.
 The equity offering, in conjunction with a new $350 million credit facility signed today with GE Capital, Union Bank of Switzerland and the Bank of Nova Scotia, will provide funds to complete a comprehensive recapitalization plan in which the company will redeem all of its preferred stock and will redeem, retire or repurchase the majority of its high yield debt. The primary components of the recapitalization include:
 (i) the redemption of $155 million of 12.25 percent senior subordinated notes due 1993-1996;
 (ii) the repurchase of $54 million accredited value of 18 percent term notes due 1997;
 (iii) the redemption of $31.6 million of 12.375 percent mortgage notes due in 1998;
 (iv) the redemption of $30 million of 14.50 percent Class A cumulative preferred stock; and
 (v) the redemption of $11.5 million of 10.00 percent Class B cumulative preferred stock.
 With respect to the repurchase of the 18 percent term notes due 1997, Warnaco has entered into repurchase agreements with 100 percent of the holders of the notes. The remaining debt and preferred stock will be redeemed, retired or repurchased by the company within the next 60 days.
 In response to the recapitalization, Standard & Poors Inc. announced this week that it has upgraded the company's senior debt ratings from "B+" to "BB."
 Morgan Stanley & Co. Incorporated is lead manager for the underwriting syndicates and Donaldson Lufkin & Jenrette Securities Corporation; Kidder, Peabody & Co. Incorporated; Lazard Freres & Co.; and Smith Barney, Harris Upham & Co. Incorporated are co-managers.
 The Warnaco Group, Inc., headquartered in New York, is a leading manufacturer of intimate apparel, menswear and accessories sold under such brand names as Warner's, Olga, Valentino Intimo, Fruit of the Loom bras and Hathaway, Christian Dior and Chaps by Ralph Lauren menswear.
 A copy of the prospectus relating to the offering may be obtained from Morgan Stanley & Co., Incorporated, 1251 Avenue of the Americas, New York, NY 10020.
 -0- 3/27/92
 /CONTACT: Linda J. Wachner, 212-370-8204, or William S. Finkelstein, 212-370-8287, both of the Warnaco Group/
 (WAC) CO: The Warnaco Group, Inc. ST: New York IN: REA SU: RCN


GK-TS -- NY018 -- 2289 03/27/92 10:17 EST
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Publication:PR Newswire
Date:Mar 27, 1992
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