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SOUTHERN UNION ANNOUNCES TENDER OFFER FOR NOTES

 SOUTHERN UNION ANNOUNCES TENDER OFFER FOR NOTES
 AUSTIN, Texas, Dec. 4 /PRNewswire/ -- Southern Union Company


(AMEX: SUG) announced today that it is making a tender offer for all of the $50 million aggregate principal amount of its 10-1/8 percent notes due May 15, 1994 for $1,077.50 per $1,000 principal amount, plus accrued interest to the date of payment of the purchase price of the notes. The offer will expire at 5:00 p.m., New York City time, on Dec. 13, 1991, unless extended.
 The tender offer is being made in connection with Southern Union's refinancing of the 10-1/8 percent notes. Southern Union intends to sell in a private placement $35 million aggregate principal amount of new notes which are expected to have lower interest rates and longer maturities than the 10-1/8 percent notes. Proceeds from the sale of the new notes together with amounts borrowed by Southern Union from Texas Commerce Bank are expected to be used to purchase the 10-1/8 percent notes.
 The tender offer is conditioned upon, among other things, there being validly tendered prior to the expiration date at least $15 million aggregate principal amount of 10-1/8 percent notes, and Southern Union obtaining sufficient proceeds from the sale of the new notes and credit facility borrowings to accomplish the refinancing.
 "As interest rates began to fall during 1991, we felt a window of opportunity had opened to refinance all or a portion of the $50 million aggregate principal amount of the 10-1/8 percent notes which come due in May 1994," stated Ronald J. Endres, senior vice president and chief financial officer of Southern Union.
 Southern Union is a publicly owned company primarily engaged in the distribution of natural gas in Texas and the Oklahoma Panhandle.
 -0- 12/4/91
 /CONTACT: Eugene N. Dubay, senior vice president of Southern Union, 512-477-5852; or Jennifer R. Wall or Robert M. Fraina of D. F. King & Co., 212-269-5550, for Southern Union/
 (SUG) CO: Southern Union Company ST: Texas IN: OIL SU: OFR


GK-OS -- NY017 -- 9064 12/04/91 09:41 EST
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Publication:PR Newswire
Date:Dec 4, 1991
Words:350
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