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CABOT ISSUES DEBT UNDER $300 MILLION PROGRAM

 CABOT ISSUES DEBT UNDER $300 MILLION PROGRAM
 BOSTON, July 22 /PRNewswire/ -- Cabot Corporation (NYSE: CBT) today


issued $45 million of unsubordinated debt securities in the form of ten and 12 year notes with fixed rates of 7.7 percent and 7.83 percent, respectively. Cabot will use proceeds from the offering to refinance a portion of short-term paper it currently holds with various banks.
 The $45 million offering is part of a $300 million shelf registration that Cabot recently filed for the purpose of refunding short and long-term debt. Merrill Lynch & Co., Goldman Sachs & Co. and J.P. Morgan Securities are serving as co-agents. Cabot last issued debt in December of 1987.
 Executive Vice President and CFO John D. Curtin said: "We plan to issue additional long term debt as part of this program in the future." Curtin emphasized, however, that the Medium Term Note (MTN) program will replace existing debt and will not increase Cabot's debt leverage. In fact, the company intends to use excess operating cash flow to reduce leverage.
 Cabot cited various advantages of the program. Most importantly, the company can capitalize on historically low interest rates and the opportunity to stagger maturities. Moreover, the MTN program offers Cabot the ability to respond quickly to favorable interest rate movements and to "reverse inquiries," in which investors can request odd lot issuances to fill funding gaps.
 Cabot Corporation is a Fortune 300 Company with operations in Specialty chemicals and materials, and energy.
 -0- 7/22/92
 /CONTACT: Bill Cavers, senior associate, treasury, 617-342-6048/
 (CBT) CO: Cabot Corporation ST: Massachusetts IN: OIL SU:


TM -- NE010 -- 1884 07/22/92 12:02 EDT
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Publication:PR Newswire
Date:Jul 22, 1992
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