TEXTRON <TXT> TO REPAY DEBT THROUGH ASSET SALES
Texton Inc said it intends to
repay a substantial portion of the debt generated to acquire
Ex-Cell-O Corp last year through internally generated cash and
proceeds from the sale of assets.
    Textron financed the acquisition by borrowing about one
billion dlrs under promissory notes, subsequently refinanced
through the sale of commercial paper and bank borrowings.
    The large diversified conglomerate with operations ranging
from defense to consumer and financial services, said in its
annual report that it has not yet identified the units, other
than its Gorham division, it expects to sell.
    Textron said it did expect to identify the units it intends
to sell during the next year. It said the sales are expected to
reduce income from continuing operations as the units' earnings
will exceed the interest on the debt retired with the proceeds
of the sales.
    It also said it plans to "return to a more conservative
balance sheet ratio of debt-to-capital," through asset sales
and increasing cash flow from continuing operations.
    It also said it will continue to examine "large acquisition
opportunities," while "pruning" operations no longer expected
to meet its strategic requirements.
 Reuter
