The First American Financial Corporation announces the completion of a debt restructuring


The First American Financial Corporation (NASDAQ: FAMRA and FAMRB) announced today the completion of a debt restructuring. The Chase Manhattan Bank, N.A. acted as agent for the $65,000,000 secured term loan. The proceeds were used to refinance outstanding demand and other debt of First American Financial and its subsidiaries and to cover certain other transaction costs.

"All of the company's demand debt has been eliminated and replaced with term debt maturing in seven years or less," said D.P. Kennedy, president of First American Financial. "This refinancing is a giant step toward our long-term goal of being substantially debt-free. Because this is an amortized loan, with no balloon payment, we will achieve that goal at the end of the term."

The company began a comprehensive debt reduction program during the second quarter of 1991, according to Kennedy. At that time, total debt was $110.0 million. As of the funding of this loan, debt now stands at $90.8 million. Total stockholders' equity in First American Financial at December 31, 1991, was $138.0 million.

Lenders participating in the consortium were Chase Manhattan, The Canada Life Assurance Co., First Interstate Bank of California, Imperial Bank, National Bank of Detroit, Sanwa Bank California and Union Bank.

The First American Financial Corporation, based in Santa Ana, Calif., operates its title insurance business through its principal subsidiary, First American Title Insurance Company, one of the largest title insurers in the nation. The company offers title services through a network of more than 7,000 offices or agents in all 50 states. It also provides title services abroad in the Bahamas, Bermuda, Canada, Guam, Mexico, Puerto Rico, the U.S. Virgin Islands and the United Kingdom.


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