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CEI SELLS $245 MILLION OF FIRST MORTGAGE BONDS TO REDEEM HIGHER-COST BONDS

 CEI SELLS $245 MILLION OF FIRST MORTGAGE BONDS
 TO REDEEM HIGHER-COST BONDS
 CLEVELAND, July 28 /PRNewswire/ -- The Cleveland Electric Illuminating Company, a Centerior Energy (NYSE: CX) company, today sold $245 million of first mortgage bonds for the purpose of redeeming two higher-cost series of bonds.
 The refinancing will result in annual savings of approximately $3 million, consistent with Cleveland Electric's and Centerior's continuing cost-reduction efforts.
 The new bonds were offered to the public at 99.8 percent to yield 7.65 percent over 10 years. The bonds have an effective interest cost to Cleveland Electric of 7.75 percent. The bonds are noncallable during their life.
 The underwriters are Morgan Stanley & Co. Incorporated, The First Boston Corporation, McDonald & Company Securities Inc. and Smith Barney, Harris Upham & Co. Incorporated. The bonds are available from the underwriters, not Cleveland Electric.
 Moody's Investors Service rates the bonds Baa2. Standard & Poor's and Duff & Phelps Inc. both rate the bonds BBB minus.
 Most of the proceeds of the new bonds will be used on Aug. 28, 1992 to redeem $125 million of Cleveland Electric's first mortgage bonds 10-1/4 percent series due 2016 and $100 million principal amount of 9.85 percent series due 2010. The redemption prices are $1,071.80 per $1,000 principal amount of bonds, plus accrued interest of $24.77 for the period June 1, 1992 through Aug. 27, 1992, and $1,040.80 per $1,000 principal amount of bonds, plus accrued interest of $32.01 for the period May 1, 1992 through Aug. 27, 1992, respectively.
 Bondholders will receive instructions for submitting their bonds from Morgan Guaranty Trust Company of New York, the trustee and redemption agent.
 Proceeds of the bond sale remaining after the redemptions will be added to the company's general funds and used for general corporate purposes.
 -0- 7/28/92
 /CONTACT: Lee Bailey of The Cleveland Electric Illuminating Company, 216-447-3235 or 216-623-1060 after hours/
 (CX) CO: Cleveland Electric Illuminating Company ST: Ohio IN: UTI SU:


KK -- CL019 -- 4174 07/28/92 14:46 EDT
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Publication:PR Newswire
Date:Jul 28, 1992
Words:340
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