Citizens Utilities common equity offering increased due to strong demand.STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 25, 1995--Citizens Utilities today announced the sale of 17 million shares of its Common Stock Series A at $13 3/8 per share through lead managing underwriter Managing underwriter The leading firm in an underwriting group, which originates the deal and acts as an agent for the group. managing underwriter See lead underwriter. Merrill Lynch & Co. and co-managing underwriters Smith Barney Inc., Lehman Brothers, Robert W. Baird Robert Wilson Baird (born April 1, 1883) helped found the financial services firm that bears his name and led it for more than 40 years. Baird’s father was a professor of Greek literature at Northwestern University in Evanston, Illinois, where Baird grew up. & Co., NatWest Securities Ltd. and Morgan Stanley & Co. Robert J. DeSantis, Citizens' vice president and treasurer, stated that due to strong investor demand in the United States and Europe the company decided to increase the offering from 15 million to 17 million shares. "We are extremely pleased with the market's positive response to Citizens' very first public offering of equity securities," DeSantis said. He added, "Strong investor interest resulted in an increase in the size of the offering and an issuance price higher than the price of the stock at the time the offering was filed with the Securities and Exchange Commission. These results demonstrate investors' high regard for Citizens' equity securities." The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the issuance, totalling $218.5 million ($251.3 million to the extent the underwriters exercise their 15% overallotment option overallotment option See greenshoe. ), will be used to repay outstanding commercial paper issued to finance Citizens' $1.1 billion acquisition of 500,000 telephone access lines from GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) Corp. "As previously announced, Citizens intends to permanently finance the acquired GTE properties with equal components of debt issuance proceeds, equity issuance proceeds and investment maturity proceeds," said DeSantis. "It is expected that this financing strategy will enable Citizens to maintain its strong debt ratings and provide the company with a sound capital platform for continued growth." Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZNA, CZNB) is a diversified growth utility company providing telecommunications, natural gas distribution, electric distribution, water and wastewater treatment services in 18 states. Citizens has a significant investment interest in Centennial Cellular Corp., a cellular telephone company, and owns Electric Lightwave, Inc., an alternative telecommunications service provider A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. . CONTACT: Citizens Utilities Arthur Dague, 203/329-5094 or Brigid Smith, 203/329-5042 |
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