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PE SELLS $450 MILLION OF MORTGAGE BONDS THROUGH COMPETITIVE BIDDING

 PE SELLS $450 MILLION OF MORTGAGE BONDS
 THROUGH COMPETITIVE BIDDING
 PHILADELPHIA, Sept. 1 /PRNewswire/ -- Philadelphia Electric Company (NYSE: PE) announced today that it sold through competitive bidding $450 million of First and Refunding Mortgage Bonds.
 The Mortgage Bonds were sold in two issues: $250 million 8-1/4 percent Series due 2022 and $200 million 7-1/8 percent Series due 2002.
 The 8-1/4 percent Series due 2022 were purchased by a group of underwriters headed by Lehman Brothers. The winning bid has an interest rate of 8-1/4 percent and a price of 98.311 percent, resulting in a net interest cost to the company of 8.405 percent. The 8-1/4 percent Series due 2022 are being offered to the public at 98.685 percent for a yield of 8.370 percent.
 The 7-1/8 percent Series due 2002 were purchased by a group of underwriters headed by The First Boston Corporation. The winning bid has an interest rate of 7-1/8 percent and a price of 98.739 percent, resulting in a net interest cost to the company of 7.305 percent. The 7-1/8 percent Series due 2002 are being offered to the public at 99.078 percent for a yield of 7.256 percent.
 Each of the Mortgage Bond issues will be issued in fully registered form. The company said it does not intend to apply for listing of the Mortgage Bonds on any stock exchange.
 Additionally, the board of directors today approved the call for redemption of five outstanding issues of the company's Mortgage Bonds in their entirety, totalling $550 million, with the funds for the redemptions to be provided from the net proceeds of today's sales of Mortgage Bonds and internally generated funds. The five issues approved for redemption are the $100 million 12-1/8 percent Series due 2016 at 108.65 percent, the $150 million 10-1/4 percent Series due 2016 at 107.94 percent, the $100 million 11 percent Series due 1997 at 103.15 percent, the $100 million 10 percent Series due 1997 at 104.45 percent and the $100 million 9-1/8 percent Series due 2006 at 103.28 percent. All the redemption prices include accrued interest.
 The anticipated redemption date for the 10-1/4 percent Series due 2016 is Nov. 1, 1992. The anticipated redemption date for the other four Mortgage Bond issues is Oct. 15, 1992. The redemption of these issues is dependent upon the settlement of the $450 million of Mortgage Bonds sold today.
 /delval/
 -0- 9/1/92
 /CONTACT: Bill Jones of Philadelphia Electric, 215-841-4129/
 (PE) CO: Philadelphia Electric Company ST: Pennsylvania IN: UTI SU:


LJ -- PH020 -- 5476 09/01/92 13:48 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Sep 1, 1992
Words:448
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