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PETRO-CANADA ANNOUNCES DEBT REPAYMENT

 PETRO-CANADA ANNOUNCES DEBT REPAYMENT
 CALGARY, Alberta, Sept. 28 /PRNewswire/ -- Petro-Canada announced


today that it has reached agreement with a Canadian financial institution to sell its account receivable of $173.8 million (Canadian) relating to the final instalment payment from the sale of its 21,071,908 common shares of Westcoast Energy Inc. The receivable sale is expected to be completed on Sept. 30.
 Petro-Canada announced in August that it had sold all its interest in Westcoast Energy Inc. at a price of $16.25 (Canadian) per share payable on an instalment basis. The first instalment of $8 (Canadian) per share was received on Sept. 15 and the final instalment of $8.25 (Canadian) per share is due on Sept. 15, 1993.
 The proceeds of the first instalment, of the receivable sale and other sources including Petro-Canada's recent sale of its interest in ISIS will be used to repay the final $300 million (U.S.) of the $1.2 billion (U.S.) of government-backed debt which was owed by Petro-Canada at the time of its initial public offering in July 1991. This repayment will result in an after-tax charge to third-quarter earnings of approximately $30 million (Canadian), largely because of interest and exchange rate fluctuations.
 This payment represents the final step in a debt restructuring program undertaken by Petro-Canada to replace debt guaranteed by the government of Canada. The net after tax charge to earnings, after the repayment of the full $1.2 billion (U.S.) is approximately $14 million (Canadian), including gains and losses previously reported in 1991 and 1992.
 "We are pleased to be able to complete this debt repayment and conclude our debt restructuring arrangements with the Federal government long before the 42 months contemplated in our agreement," said W.H. Hopper, chairman and chief executive officer. "In just 15 months since our initial public offering, we will have restructured all our government-backed debt and reduced our overall debt by more than $1 billion (Canadian)."
 -0- 9/28/92
 /CONTACT: Bob Foulkes, public affairs, 403-296-8472, or Bhasker Ayer, investor relations, 403-296-4048, both of Petro-Canada/
 (PCA.) CO: Petro-Canada ST: Alberta IN: OIL SU:


BP -- LA020 -- 4100 09/28/92 17:02 EDT
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Publication:PR Newswire
Date:Sep 28, 1992
Words:363
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