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PENNSYLVANIA POWER AND LIGHT CO. SELLS PREFERRED STOCK TO REDEEM HIGHER-COST ISSUES

 ALLENTOWN, Pa., May 27 /PRNewswire/ -- Pennsylvania Power & Light Co. (NYSE: PPL) (PP&L) offered $100 million of series preferred stock to the public through an underwriting group consisting of The First Boston Corporation, Goldman Sachs & Co., Merrill Lynch & Co., and Morgan Stanley & Co. Inc.
 The new series of preferred stock will have a yield of 6.33 percent.
 Proceeds from the sale will be used to retire four series of preferred stock with higher dividend rates through their respective optional redemption provisions. On July 1, the company will redeem $30 million of its 8.75 percent series at a redemption price of $103.58 per share, $25 million of its 8 percent series at a redemption price of $102 per share and $16 million of its 7.40 percent series at a redemption price of $101.48 per share plus, in each case, accrued and unpaid dividends to the redemption date.
 On July 15, the company will redeem $22.4 million of its 8.60-percent series at a redemption price of $101.34 per share, which includes the amount equal to the accrued and unpaid dividends to the redemption date. The balance of the proceeds from the sale of the new series will be used by the company for general corporate purposes.
 The new series is not redeemable prior to July 1, 2003. On and after July 1, 2003, the series is redeemable at any time at $100 per share plus accrued and unpaid dividends to the redemption date.
 The new series will have a sinking fund that requires the redemption of 5 percent of the series on July 1 in each of the years 2003 through 2007, and the remainder of the series on July 1, 2008. The sinking fund redemption price is $100 per share plus an amount equal to accrued and unpaid dividends to the redemption date.
 PP&L supplies electricity to a 10,000 square-mile area of 29 counties in Central Eastern Pennsylvania. Among the communities it serves are Allentown, Bethlehem, Harrisburg, Hazleton, Lancaster, Scranton, Wilkes-Barre and Williamsport.
 /delval/
 -0- 5/27/93
 /CONTACT: John R. Biggar of Pennsylvania Power & Light Co., 215-774-5613/
 (PPL)


CO: Pennsylvania Power & Light Co. ST: Pennsylvania IN: UTI SU:

JM -- PH031 -- 2981 05/27/93 13:06 EDT
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Publication:PR Newswire
Date:May 27, 1993
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