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ILLINOIS CENTRAL CORP. COMMENCES TENDER OFFER FOR SUBORDINATED DEBT AND REGISTERS NEW PUBLIC OFFERING

 CHICAGO, April 22 /PRNewswire/ -- Illinois Central Corp. (NYSE: IC) today announced that its principal subsidiary, Illinois Central Railroad Company, has commenced a fixed price tender offer for all $145 million of its 14-1/8 percent Senior Subordinated Debentures, due Oct. 1, 2001, at $1,190 per $1,000 bond plus accrued interest. Lehman Brothers is Dealer Manager of the tender offer. Continental Bank, N.A. is the Depositary.
 The offer is conditioned upon: i) a minimum of 50 percent of outstanding debentures having been validly tendered, and ii) arranging financing. With respect to the latter, the Railroad today filed a registration statement for a public offering of $100 million of non- callable, 10-year notes due 2003, the proceeds of which along with additional bank debt will be used to finance the tender offer. Underwriters named in the registration statement are Lehman Brothers, Goldman, Sachs & Co., Morgan Stanley & Co. Incorporated, and Wertheim Schroder & Co. Incorporated.
 President and Chief Executive Officer E. Hunter Harrison noted, "Refinancing the high-cost senior subordinated debt has the beneficial effects of increasing cash flow, reducing interest expense and making it possible to accelerate debt reduction. Our ability to undertake this refinancing provides IC greater financial flexibility going forward, while recognizing our achievements to date in controlling costs, reducing debt and improving operating productivity."
 Illinois Central Railroad operates a 2,700-mile freight railroad between Chicago and the Gulf of Mexico.
 NOTE: A registration statement relating to the notes referred to above ("new notes") has been filed with the Securities and Exchange Commission but has not yet become effective. These new notes may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these new notes in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
 -0- 4/22/93
 /CONTACT: Ann G. Thoma of IC - corporate relations, 312-755-7591, or Steven Delaney of Lehman Brothers, 800-438-3242/
 (IC)


CO: Illinois Central Corp. ST: Illinois IN: TRN SU: OFR

SH -- NY022 -- 9271 04/22/93 10:02 EDT
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Publication:PR Newswire
Date:Apr 22, 1993
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