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FIRST BANK SYSTEM COMPLETES $114.5 MILLION PREFERRED STOCK OFFERING

               FIRST BANK SYSTEM COMPLETES $114.5 MILLION
                        PREFERRED STOCK OFFERING
    MINNEAPOLIS, Nov. 5 /PRNewswire/ -- First Bank System, Inc. (NYSE: FBS) announced today that it has completed its previously announced offering of Series 1991A Cumulative Convertible Preferred Stock.  The company announced its intention to issue the stock on Sept. 10, 1991.  The underwriters exercised their option to purchase an additional 290,000 shares, increasing the issue to 2,290,000 shares and $114.5 million from $100 million.
    The offering was priced on Oct. 28, 1991 at $50 per share with an annual dividend of $3.5625 per share at an annual rate of 7.125 percent. The preferred stock is convertible into common stock at a conversion price of $28.975 per share, which is a premium of 22 percent over the closing common stock price on Oct. 28.
    The approximately $112 million in net proceeds increases the company's equity to assets ratio to 8.3 percent, which is among the highest for regional


bank holding companies.
    Morgan Stanley & Co. Incorporated, Lehman Brothers, Dain Bosworth Incorporated and Piper, Jaffray & Hopwood Incorporated managed the offering.
    On Oct. 23, Moody's Investors Service raised the ratings on First Bank System's long-term debt.  This offering of preferred stock was assigned a rating of "baa1."  Moody's noted "... improvement in the company's fundamental performance -- the result of a reduced balance sheet and a more conservative profile.  Management has focused on parent company liquidity and capital expansion."
    First Bank System is a regional bank holding company headquartered in Minneapolis with assets of $17.9 billion.  The company provides complete financial services to individuals and institutions through 34 banks and trust companies with more than 158 offices located in Minnesota, Colorado, Montana, North Dakota, South Dakota, Washington and Wisconsin.
    -0-                        11/05/91
    /CONTACT:  Wendy Raway, 612-370-5154 or Thomas Rice, 612-370-3596, both of First Bank/ CO:  First Bank System, Inc. ST:  Minnesota IN:  FIN SU:  OFR JS-KH -- MN006 -- 1206 11/05/91 11:26 EST
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Publication:PR Newswire
Date:Nov 5, 1991
Words:327
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