Citizens Utilities issues $200 million of 50 year debentures.STAMFORD, Conn.--(BUSINESS WIRE)--Dec. 3, 1996--Citizens Utilities announced today that the company issued $200 million of 50 year Debentures. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Robert J. DeSantis, vice president and treasurer, the Debentures were issued with an interest rate of 7.05% and mature on October 1, 2046. The underwriting was lead-managed by Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. and co-managed by Morgan Stanley & Co., Incorporated and Smith Barney. The Debentures are rated AA+ by Standard & Poor's Rating Group, Duff & Phelps Credit Rating Co. and Fitch Investors Service Fitch Investors Service A financial services company best known for the bond ratings it provides investors. , Inc. and Aa3 by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc. The proceeds from the issuance will be used to reduce outstanding commercial paper and fund 1997 expenditures. Commenting on the Debenture issuance, Mr. DeSantis said, "Citizens Utilities' superior financial position provides the company with tremendous flexibility in accessing the capital markets on an opportunistic basis. Our corporate finance strategy is to temporarily fund certain working capital and longer term needs with commercial paper and other low-cost short-term borrowings until an extremely favorable permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. such as this can be arranged. "We are very pleased to have negotiated this permanent financing at a time when interest rates are at about their lowest levels during the past 20 years." Mr. DeSantis added, "We were successful in pricing the Debentures at just 68 basis points over the 30-year Treasury rate while achieving a 50 year maturity. The pricing and terms of the issued Debentures demonstrate that investors recognize Citizens' high credit quality and its strong prospects for the future." Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZNA, CZNB) is a full-service telecommunications company and utility company with natural gas, electric, water and wastewater treatment operations, serving 1.8 million customers in 20 states. Citizens has a significant investment in Centennial Cellular, a cellular telephone company, and owns Electric Lightwave, Inc., a competitive telecommunications company serving five major metropolitan areas in the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . CONTACT: Arthur Dague, 203/329-5094 |
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