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GULF STATES UTILITIES COMPANY CLOSES SALE OF $300 MILLION IN FIRST MORTGAGE BONDS

 BEAUMONT, Texas, Nov. 24 ~PRNewswire~ -- Gulf States Utilities Co. today closed the sale of $300 million in first mortgage bonds. The sale was handled by Goldman, Sachs & Co.; The First Boston Corp.; Kidder, Peabody & Co. Inc.; and J.P. Morgan Securities Inc., with Citicorp Securities Markets Inc. as sole member of the special selling group.
 The bonds include $75 million that will mature in 1996 and bear a 6.67 percent interest rate, $75 million maturing in 1997 and bearing a 6.99 percent interest rate, $75 million maturing in 1998 and bearing a 7.35 percent interest rate and $75 million maturing in 1999 and bearing a 7.46 percent interest rate.
 Proceeds from the sale, together with funds from other sources, will be used to redeem $317 million of outstanding first mortgage bonds with interest rates ranging from 10.125 percent to 12.125 percent. Gulf States will save almost $14 million per year in interest costs with the new bonds, a company official estimated.
 The sale brings to $1.2 billion the total amount of first mortgage bonds sold since January of this year. Offerings of $300 million in January and $600 million in April were used to refinance about $665 million in higher-cost first mortgage bonds and to provide for preference stock dividend arrearages and to redeem outstanding preference stock issues.
 GSU is a Beaumont, Texas-based utility serving more than 586,000 customers along the Gulf Coast between New Orleans and Houston.
 -0- 11~24~92
 ~CONTACT: Doug McCormick of Gulf States Utilities Company, 409-839-2858~
 (GSU)


CO: Gulf States Utilities Co. ST: Texas IN: UTI SU:

LR -- NY066 -- 1201 11~24~92 15:45 EST
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Publication:PR Newswire
Date:Nov 24, 1992
Words:279
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