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GENERAL INSTRUMENT PRICES $450 MILLION IN CONVERTIBLE NOTES; WILL SAVE AT LEAST $17 MILLION ANNUALLY IN INTEREST COSTS

 CHICAGO, June 15 /PRNewswire/ -- General Instrument Corporation (GI) (NYSE: GIC) announced today that it has priced a $450 million offering of convertible junior subordinated notes due 2000.
 GI said the notes were priced with a coupon of 5.0 percent and an initial conversion price of $47.50 per share of common stock, or approximately 21 shares of common stock for each $1,000 principal amount of notes. Net proceeds from the sale of the notes will be used to prepay a substantial portion of the $600 million 9-1/2 percent subordinated debentures issued in 1990 in connection with GI's acquisition by Forstmann Little & Co.
 "This transaction will reduce annual interest expense by at least $17 million, enhancing GI's ability to improve earnings while pursuing the multiple growth opportunities created by its technological leadership and the convergence of the telecommunications and computer industries," said Richard S. Friedland, chief financial officer. "In addition, we expect GI will soon complete the revision of its bank credit agreement, which will lower the interest rate on approximately $300 million in outstanding bank debt and result in additional savings."
 Goldman, Sachs & Co. and Merrill Lynch & Co. co-managed the offering. GI has granted the underwriters options to purchase up to an additional $50 million of notes to cover over-allotments.
 General Instrument is a world leader in broadband communications, distribution and access control technologies for cable, satellite and terrestrial broadcasting applications, as well as in discrete power rectifying components.
 -0- 6/15/93
 /CONTACT: George Sard or Anna Cordasco of Sard Verbinnen & Co., 212-687-8080, for General Instrument Corporation/
 (GIC)


CO: General Instrument Corporation ST: Illinois IN: SU:

SH-MP -- NY014 -- 1975 06/15/93 09:17 EDT
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Publication:PR Newswire
Date:Jun 15, 1993
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