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NORTHERN TELECOM ANNOUNCES DEBT OFFERING

 TORONTO, Sept. 2 /PRNewswire/ -- Northern Telecom (NYSE: NT) announced today an offering of US$400 million of notes in the United States. The issue consists of US$200 million 6 percent notes, which mature on Sept. 1, 2003 and US$200 million 6-7/8 percent notes, which mature on Sept. 1, 2023. The notes will be issued at 99.509 percent and 98.71 percent of par, respectively.
 The securities are being offered pursuant to Northern Telecom's shelf registration statement filed with the United States Securities and Exchange Commission. Northern Telecom will use the proceeds from the issue to repay maturing obligations, to refinance existing short-term debt and for general corporate purposes. A group consisting of Goldman, Sachs & Co., The First Boston Corporation, J. P. Morgan Securities Inc., and Lehman Brothers, all of New York, are underwriting the issue.
 Northern Telecom included in the recent developments section of the prospectus supplement an update on the agreement to sell its STC Submarine Systems business for cash consideration of 600 million pounds sterling (approximately US$900 million) announced on July 21, 1993. Documentation was filed on Aug. 27, 1993 with the United Kingdom Office of Fair Trading to obtain regulatory approval. The closing of the sale is anticipated in the fourth quarter of 1993, unless the matter is referred to the United Kingdom Monopolies and Mergers Commission, in which case, Northern Telecom anticipates that the parties to the sale would agree to an extension of the existing deadline for the closing of the transaction to the first quarter of 1994.
 Northern Telecom also stated in the recent developments section of the prospectus supplement that its principal U.S. subsidiary, Northern Telecom Inc., expects to receive a statutory notice of proposed assessment with respect to its 1980 through 1985 federal income tax returns for proposed additional tax liability of up to US$450 million, together with interest at the applicable statutory rates. Northern Telecom Inc., has protested the proposed additional tax liability and will file a petition opposing such additional tax liability if a statutory notice of proposed assessment is received. After consultation with outside tax counsel and Northern Telecom's independent accountants, it is the opinion of management of Northern Telecom that additional tax liability, if any, will not have a material adverse effect on the result of operations or financial position of Northern Telecom.
 Northern Telecom is the leading global supplier of fully digital telecommunications switching systems, providing products and services to telephone operating companies, corporations, governments, universities and other institutions worldwide. Northern Telecom has 58,000 employees and had 1992 revenues of US$8.41 billion.
 -0- 9/2/93
 /NOTE TO EDITORS: This press release shall not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state./
 /CONTACT: Tom Tropea, 416-566-3178, or Gary Brandt, 416-566-3098, both of Northern Telecom Limited/
 (NT)


CO: Northern Telecom Inc. ST: Ontario IN: TLS SU: OFR

TS -- NY006 -- 8234 09/02/93 08:12 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
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