PERRIGO WILL REPAY $30 MIL. DEBT TO PARENT GROW GROUP

PERRIGO WILL REPAY $30 MIL. DEBT TO PARENT GROW GROUP with a portion of initial proceeds from loan agreements with two Michigan banks, Grow announced Dec. 29. The agreements are part of a Grow Group debt restructuring necessitated when the stock market crash aborted a public stock offering of the company's private label subsidiary Perrigo. Commenting on the debt restructuring, Grow President and CEO Russell Banks said the loan agreements will allow for Grow's continued growth and "enable Perrigo to maintain aggressive penetration of its markets pending the stabilization of the stock market." Perrigo markets over 300 private label H&BA and OTC products as well as the new Equate line of national branded generics. The Grow subsidiary also markets a full line of vitamins and sunscreen products under the Nature's Glo control label. Perrigo recently won a lawsuit filed by American Home Products that allows Perrigo to continue to sell brown ibuprofen tablets. The $30 mil. debt was assigned to Perrigo when Grow acquired it in January 1986 for approximately $45.2 mil. in cash, notes and new non-convertible preferred stock. Grow had hoped to raise between $28-$34 mil. from the stock offering. Perrigo's loan agreements include a $45 mil. three-year revolving credit arrangement and a $20 mil. nine-year term loan with the National Bank of Detroit and the Old Kent Bank of Grand Rapids. Grow has put together a $60 mil. three-year revolving credit agreement with a consortium of banks. The agreement, which can be converted into a three-year term loan, is being handled by First National Bank of Chicago.