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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: June 17, 1996
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HOUSEHOLD INTERNATIONAL, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-8198 36-3121988
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation Number)
2700 Sanders Road, Prospect Heights, Illinois 60070
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 847/564-5000
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Item 5. Other Events
Press release announcing the agreements under which
Household International, Inc. ("Household") will
acquire approximately $3.4 billion Union Privilege
affinity credit card receivables from The Bank of New
York (Delaware), and will market the Union Privilege
card to the affiliated union membership of the AFL-CIO.
The purchase price for the portfolio includes a premium
to The Bank of New York of approximately $580 million.
Household and its subsidiaries will initially finance
the portfolio through the issuance of debt instruments
of varying maturities. The closing is scheduled to
occur in the second quarter.
Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
No. Exhibit
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99 Press release regarding the agreements under
which Household will acquire the Union
Privilege affinity card portfolio from The
Bank of New York (Delaware) and will market
the Union Privilege card to the AFL-CIO
membership.
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SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
HOUSEHOLD INTERNATIONAL, INC.
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(Registrant)
By: /s/ Susan E. Casey
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Susan E. Casey
Assistant Secretary
Dated: June 17, 1996
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U:\LAW\EDGAR\I8K696.WP
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For Release: Immediately
Contact: Craig A. Streem
Vice President - Investor Relations
(847) 564-6053
Celeste M. Murphy
Director - Investor Relations
(847) 564-7568
Household International Acquires AFL-CIO Credit Card Program;
Credit Card Portfolio Increases 25%
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Prospect Heights, IL; June 14, 1996 -- Household International,
Inc. (NYSE: HI), a $36.6 billion (managed receivables) provider
of consumer financial services, announced today that it has
agreed to acquire the AFL-CIO's $3.4 billion Union Privilege
affinity card portfolio. Union Privilege, which was created by
the AFL-CIO to market benefits to union members, has 2.2 million
cardholders. Under the new agreement, Household will market the
Union Privilege card to 13 million members of unions affiliated
with the AFL-CIO, one of the nation's largest affinity groups.
The acquisition will increase Household's managed credit card
portfolio 25 percent, to $16.6 billion, and makes Household the
sixth largest issuer of VISA/MasterCards in the United States.
Household has agreed to acquire the portfolio from The Bank of
New York (Delaware). Terms of these transactions were not
released.
Investment in High Return Businesses
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"This acquisition reflects Household's intention to commit
capital to its core, higher return businesses, principally credit
cards and consumer lending," said William F. Aldinger, chairman
and CEO of Household. "The transaction will be accretive to
Household's earnings from the outset."
Cite Long Experience
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Household said the Union Privilege program provides it with
another avenue to reach its core customer base of working
Americans, one that it has served for more than 118 years. "This
is a high quality customer base. Because the delinquency rate
of AFL-CIO union members is well below the national average, we
truly have a win-win situation here," said Joseph W. Saunders,
president of Household's credit card operations. "We can deliver
a very attractive product to the labor federation's members while
achieving our own objective of continuing to be the low-cost
producer in the business. The transaction allows us to realize
even greater leverage of our existing credit card operations."
The company said specifics of the new program will be announced
at a later date.
"Union Privilege selected Household because its track record as a
lender to working Americans made Household the best candidate to
meet the consumer needs of union members," AFL-CIO President John
J. Sweeney said. "With Household and Union Privilege working to
develop new features and products, the union credit card will
continue to be the best and most affordable card for working
Americans."
Household has broad experience launching and operating credit
card partnerships, including the General Motors, Ameritech, US
West, Carlson Wagonlit, Pacific Bell and Charles Schwab programs.
Co-branding programs are attractive, the company noted, because
they foster high cardholder loyalty, lower attrition and less
commodity-based pricing.
Household International, through its subsidiaries, is a major
provider of consumer financial services in the United States,
Canada and the United Kingdom. Its primary businesses include
HFC, the nation's oldest consumer finance company, and Household
Bank, one of the largest issuers of private label and general
purpose credit cards in the United States.
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