Eastern Enterprises announces defeasance of Boston Gas debentures due 2001.WESTON, Mass.--(BUSINESS WIRE)--Dec. 22, 1995--Eastern Enterprises (NYSE NYSE See: New York Stock Exchange :EFU EFU Exclusive Farm Use (zoning) ) today announced that Boston Gas Co., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , has completed and in-substance defeasance In-substance defeasance Process through which debt is removed from the balance sheet but not canceled. of all outstanding 8 3/4 percent and 9 percent debentures due 2001, with an aggregate current outstanding principal amount of $60 million. In connection with the defeasance, Boston Gas has irrevocably requested that the 9 percent debentures be called on May 15, 1996 and the 8/43 percent debentures be called on Dec. 15, 1996. Under the terms of the applicable debt instruments, Boston Gas has deposited U.S. government securities in an irrevocable trust to cover principal, call premiums and interest to the call dates. Boston Gas issued $60 million of medium term notes with an average maturity of 26 years and a weighted average coupon Weighted average Coupon The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the weighting factor. of 7.08 percent. Proceeds from this issuance were used to complete the in-substance defeasance. Eastern Enterprises owns and operates two businesses: Boston Gas Co., New England's largest distributor of natural gas, and Midland Enterprises Inc., a leading barge operator on the nation's inland waterways. CONTACT: Eastern Enterprises, Weston Jane W. McCahon, 617/647-2316 |
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