Citizens Utilities convertible preferred security offering increased due to strong demand.STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 19, 1996--Citizens Utilities announced today the sale of 4 million of its 5% Convertible Preferred Securities at $50 per security through managing underwriters Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. and Lehman Brothers. Each security is convertible into 3.25 shares of Citizens' Common Stock Series A, representing an initial conversion premium of 23% and a conversion price of $15 3/8 per share. The preferred securities are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CZNPr and are rated AA by Standard & Poor's Rating Group and Fitch Investors Service Fitch Investors Service A financial services company best known for the bond ratings it provides investors. and Aa3 by Moody's Investor Service. Robert J. DeSantis, Citizens' vice president and treasurer, stated that "due to strong investor demand the size of the offering was increased from 3.5 million to 4 million securities. We are extremely pleased with the market's positive response to Citizens' first offering of convertible securities. This demand," he said, "demonstrates investors' high regard for Citizens' equity securities. "This financing constitutes the final phase of Citizens' permanent funding of its $1.4 billion acquisition of 620,000 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. and ALLTEL. The $200 million of issuance proceeds will be used to repay outstanding commercial paper issued to temporarily and partially finance the acquisitions." Mr. DeSantis added, "Citizens has now successfully implemented its previously announced strategy of permanently funding the acquisitions with equal components of equity issuance proceeds, debt issuance proceeds and investment maturity proceeds. Financing such significant growth in this manner will enable Citizens to extend its record of 50 consecutive years of increased revenues, earnings and earnings per share while maintaining its exceptionally strong debt ratings." Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZNA, CZNB) is a diversified growth company providing telecommunications, natural gas distribution, electric distribution, water and wastewater treatment services to approximately 1.6 million customers in 19 states. Citizens has a significant investment in Centennial Cellular Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CYCL), 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. , and Citizens Long Distance, a long distance telephone company. CONTACT: Citizens Utilities Arthur Dague, (203) 329-5094 |
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