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SOUTHLAND'S NEW COMMERCIAL PAPER TO BE RATED A-1+/P-1 BY STANDARD & POOR'S AND MOODY'S, BASED ON ITO-YOKADO GUARANTEE

 SOUTHLAND'S NEW COMMERCIAL PAPER TO BE RATED A-1+/P-1
 BY STANDARD & POOR'S AND MOODY'S, BASED ON ITO-YOKADO GUARANTEE
 DALLAS, Sept. 8 /PRNewswire/ -- The Southland Corporation today announced that its new commercial paper program, which will raise proceeds of up to $400 million, has received ratings of A-1+/P-1 by Standard & Poor's Corporation and Moody's Investors Service, respectively. The ratings are based on an unconditional guarantee from Ito-Yokado Co., Ltd., whose subsidiary, IYG Holding Company, owns the majority of Southland's common stock. The commercial paper, which will be marketed through Goldman Sachs Money Markets, L.P., and Merrill Lynch Money Markets Inc., will be issued initially in early September. Proceeds will be used for general corporate purposes.
 As part of the new financing, Southland has received approval for an amendment to its senior bank credit agreement that extends the company's $275 million revolving credit agreement from Dec. 31, 1992, to Dec. 31, 1995. Under the terms of the amendment, Southland will prepay $350 million of its senior term loan, which has a balance of approximately $730 million. After giving effect to the company's remaining amortization payments of $32 million this year, the prepayment will reduce the remaining amortization over the next three years as follows: in 1993 from $200 million to $75 million; in 1994 from $300 million to $125 million; and in 1995 from $198 million to $148 million.
 With over 13,000 convenience stores around the world, 7-Eleven is the premier name and largest chain in the convenience retailing industry. Over 6,300 7-Eleven stores are operated or franchised in the United States and Canada by The Southland Corporation. Southland is 64- percent owned by IYG Holding Company, a wholly owned subsidiary of Ito- Yokado Co., Ltd., and Seven-Eleven Japan Co., Ltd. Seven-Eleven Japan operates approximately 4,800 7-Eleven stores under an area license agreement with Southland. Another 2,400 7-Eleven stores are operated by area licensees and affiliates of Southland in parts of the U.S. and 17 other countries.
 -0- 9/8/92
 /CONTACT: Cecilia Stubbs Norwood, 214-828-7272, or Markeeta McNatt 214-828-7209, both of Southland Corporation, or recorded update, 214-828-7587/ CO: The Southland Corporation ST: Texas IN: REA SU: RTG


AH -- NY037 -- 7003 09/08/92 12:20 EDT
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Publication:PR Newswire
Date:Sep 8, 1992
Words:372
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