Date: Fri, 21 Nov 1997 03:09:44 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 4267 Last-modified: Wed, 15 Oct 1997 21:00:06 GMT Anacomp - Newswire
   Anacomp Announces Agreement on New Plan for Refinancing of Senior Debt


                Company also Announces Intention to Pre-pay
                  Next Senior Debt Principal Installment

    ATLANTA, Jan. 14 /PRNewswire/ -- Anacomp, Inc. (Nasdaq: ANCO) today said
that it has reached a new agreement with Lehman Brothers, Inc. for the
refinancing of Anacomp's senior secured debt.  Lehman Brothers has agreed to
underwrite a new $80 million debt facility to replace Anacomp's existing
senior secured notes.  The new debt facility will consist of $55 million in
term loans and a revolver of up to $25 million.
    In addition, Anacomp announced its intention to pre-pay the second
principal installment of its existing senior debt.  The company plans to make
a payment of approximately $14.3 million on February 20, about six weeks ahead
of schedule.  This payment will reduce Anacomp's senior debt to close to
$80 million, which is the amount to be provided in the new refinancing
agreement with Lehman Brothers.  Anacomp also pre-paid its first principal
installment back in September.
    The new Lehman Brothers refinancing agreement replaces an earlier plan for
a $115 million credit facility.  "Because of our strong cash flows, we
realized that we had more than enough cash to reduce our senior debt to $80
million," explained Donald L. Viles, Anacomp's chief financial officer, "and
by doing so we could structure a more attractive and less costly refinancing
deal."  Unlike the previous agreement, the new refinancing agreement does not
require the consent of Anacomp's senior subordinated noteholders.
    "With the upcoming pre-payment on our senior debt, we will have repaid
almost one-third of our senior debt since exiting Chapter 11 in June,"
continued Viles.  "These pre-payments are part of our overall financial
strategy to delever the company's balance sheet.  At the same time, our new
debt facility with Lehman Brothers will provide us with significantly lower
interest rates, saving us more than $3 million in the first 12 months alone.
In addition, our new revolving credit facility will provide us greater
latitude in managing our cash and in making wise investments in new products
and services."  Anacomp expects the refinancing to be completed by February
28, 1997.
    Serving customers throughout the world, Anacomp provides products and
services that manage corporate information throughout its life cycle.
CONTACT: Media: Jeff Withem, 404-876-3361 or jwithem@anacomp.com; or Analysts: Nancy Vandeventer, 800-350-3044 or nvandeventer@anacomp.com