AMERICAN STORES ANNOUNCES NOTE OFFERING
AMERICAN STORES ANNOUNCES NOTE OFFERING SALT LAKE CITY, March 24 /PRNewswire/ -- American Stores Co.
(NYSE: ASC) announced today that it has priced a public offering of $250 million of 9 1/8 percent notes due April 1, 2002, at 99.484 percent to yield 9.205 percent. The company increased the amount of the notes it anticipated offering by $50 million to $250 million.
The issue was priced at a spread of 162.5 basis points above the 10-year Treasury note. The notes are not redeemable prior to maturity. The notes were preliminarily rated BBB- by Standard & Poor's Corp., Ba1 by Moody's Investors Services Inc., and BBB by Fitch Investor Services. The underwriters for the notes are Lehman Brothers and J.P. Morgan Securities Inc. The net proceeds of the offering will be used to repay a portion of indebtedness under the company's principal bank credit agreement. The issuance of the notes enables the company to convert floating rate debt to fixed rates and to extend its debt maturity schedule, thereby making more of the company's operating cash flow available for capital expenditures and working capital. -0- 3/24/92 /CONTACT: Cal Drecksel (investors) or Troy D'Ambrosio (media) of American Stores, 801-539-0112/ (ASC) CO: American Stores Co. ST: Utah IN: REA SU: OFR
AL-JL -- LA032 -- 1310 03/24/92 18:26 EST
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|Date:||Mar 24, 1992|
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