GULF STATES ANNOUNCES PUBLIC OFFERING
GULF STATES ANNOUNCES PUBLIC OFFERING BEAUMONT, Texas, Jan. 10 /PRNewswire/ -- Gulf States Utilities Co.
(NYSE: GSU) today filed with the Securities and Exchange Commission for the public offering of $300 million in first mortgage bonds, a GSU official reported. The net proceeds of the offering will be used to retire outstanding first mortgage bonds with interest rates ranging from 13.5 percent to 16.8 percent.
Goldman Sachs & Co., Kidder Peabody & Co. Inc., First Boston Corp. and J.P. Morgan Securities will serve as underwriters for the transaction. The sale is expected to take about two weeks. GSU expects to reduce its interest expense through the refinancing, thus helping to hold down future rate increases to its customers, the official said. Proceeds from the offering will cover the redemption of $17.15 million in bonds at 16.8 percent interest, due in 1993; $100 million at 15 percent, due in 2012; $100 million at 13.75 percent, due in 1994; and about $65.7 million of a $100 million bond series at 13.5 percent, due in 2013. Redemption premiums associated with the various series range from zero to about $9 million. Accrued interest on the bonds will be paid from general corporate funds. Notice of the redemption of the outstanding bonds will be given at about the same time the new bonds are sold, the GSU official said. GSU is a Beaumont, Texas-based utility serving more than 574,000 customers along the Gulf Coast between New Orleans and Houston. -0- 1/10/92 /CONTACT: Susan H. Gilley of Gulf States Utilities, 409-839-2846/ (GSU) CO: Gulf States Utilities Co. ST: Texas IN: UTI SU: OFR SB -- NY056 -- 8713 01/10/92 15:20 EST
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|Date:||Jan 10, 1992|
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