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WHEREHOUSE ENTERTAINMENT COMPLETES MANAGEMENT-LED BUYOUT; SCOTT YOUNG NAMED CHAIRMAN OF THE BOARD

 WHEREHOUSE ENTERTAINMENT COMPLETES MANAGEMENT-LED BUYOUT;
 SCOTT YOUNG NAMED CHAIRMAN OF THE BOARD
 TORRANCE, Calif., June 11 /PRNewswire/ -- A management-led team supported by Merrill Lynch Capital Partners Inc. today completed the acquisition of Wherehouse Entertainment Inc. from an affiliate of Adler & Shaykin, a New York-based leveraged buyout firm. The transaction was valued at $275 million.
 Financing for the merger and related transactions included $110 million in senior bank financing (including a $45 million working capital facility) through a syndicate led by Bankers Trust Co., $110 million of senior subordinated debt and $73.3 million of equity capital. Existing Wherehouse indebtedness of $138 million was retired from the new financings, while the company's 6 1/4 percent subordinated debentures due 2006 remain outstanding.
 Scott Young, president and chief executive officer of Wherehouse, was named chairman of the board. No changes in Wherehouse management or operations personnel are expected. "We're excited about the future of Wherehouse," said Young. "The completion of this transaction culminates a long process that will help Wherehouse continue to grow and prosper. With the assistance of Merrill Lynch, we have the ability to achieve our long-term goals, benefiting all those that work or shop at The Wherehouse."
 Merrill Lynch Capital Partners, a wholly owned subsidiary of Merrill Lynch & Co. Inc., acts as a general partner for two leveraged buyout funds, whose limited partners are institutional investors. Investments made by Merrill Lynch Capital Partners are funded by the limited partners, and include up to a 20 percent co-investment by Merrill Lynch.
 Wherehouse, the largest prerecorded home entertainment and software retailer in the West, operates more than 300 stores in California, Arizona, Washington, Oregon, Nevada and Colorado. Wherehouse is headquartered at 19701 Hamilton Ave., Torrance, CA 90502.
 -0- 6/11/92 R
 /CONTACT: Bruce Jesse of Wherehouse Entertainment, 310-538-2314, ext. 2600/ CO: Wherehouse Entertainment Inc. ST: California IN: ENT SU: PER TNM


AL-CH -- LA019 -- 9429 06/11/92 16:58 EDT
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Publication:PR Newswire
Date:Jun 11, 1992
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