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GULF STATES UTILITIES COMPLETES NEGOTIATIONS FOR PUBLIC OFFERING

 GULF STATES UTILITIES COMPLETES NEGOTIATIONS FOR PUBLIC OFFERING
 BEAUMONT, Texas, April 15 /PRNewswire/ -- Gulf States Utilities Co. (NYSE: GSU) has completed negotiations for the public offering of $600 million in first mortgage bonds. The bonds are being offered by Goldman, Sachs & Co.; The First Boston Corp.; Kidder, Peabody & Co., Inc.; and J.P. Morgan Securities Inc.
 The underwriters are offering $300 million in 12-year bonds to the public at an 8.25 percent interest rate and the remaining $300 million in 32-year bonds at an 8.70 percent interest rate.
 Proceeds from the sale will be used to redeem outstanding first mortgage bonds with interest rates ranging from 12.125 percent to 13.5 percent.
 Company officials said that although GSU's board of directors has taken no action, it is within its discretion to use a portion of the proceeds to pay preference stock dividend arrearages and to redeem the outstanding preference stock. As of March 15, the arrearage totaled $86.6 million, while the outstanding preference stock, plus redemption premiums, amounted to about $118.3 million.
 In January, Gulf States refinanced about $283 million in higher-cost first mortgage bonds with the proceeds from the sale of two first mortgage bond issues.
 GSU is a Beaumont-based electric utility serving more than 578,000 customers along the Gulf Coast between New Orleans and Houston.
 -0- 4/15/92
 /CONTACT: Susan H. Gilley of Gulf States Utilities, 409-839-2846/
 (GSU) CO: Gulf States Utilities Co. ST: Texas IN: UTI SU: OFR


CK -- NY129 -- 8987 04/15/92 17:56 EDT
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Publication:PR Newswire
Date:Apr 15, 1992
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