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UNION TEXAS PETROLEUM ANNOUNCES SECONDARY OFFERING OF COMMON STOCK; TO REDEEM PREFERRED STOCK & WARRANTS AND TO OFFER NEW SENIOR NOTES

UNION TEXAS PETROLEUM ANNOUNCES SECONDARY OFFERING OF COMMON STOCK;
 TO REDEEM PREFERRED STOCK & WARRANTS AND TO OFFER NEW SENIOR NOTES
 HOUSTON, Sept. 23 /PRNewswire/ -- Union Texas Petroleum Holdings, Inc. (NYSE: UTH) announced today that its board of directors, following a request by Allied-Signal Inc. (NYSE: ALD), has authorized the filing of a registration statement for all shares of Union Texas' common stock held by Allied-Signal. Allied-Signal holds approximately 39 percent of Union Texas' common stock. Union Texas said it expects to file a registration statement for the offering later this week with the Securities and Exchange Commission.
 In a secondary public offering, 30 million shares are expected to be offered concurrently in the United States and internationally. All shares will be sold by Allied-Signal. Allied-Signal is expected to grant the underwriters an option to purchase up to an additional 3.3 million shares to cover over-allotments, if any. If such option is not exercised by the underwriters, Union Texas will purchase the 3.3 million shares at the offering price, less underwriters' discount. Upon completion of the offering, Allied-Signal will not own any shares of Union Texas' common stock. Union Texas will not receive any proceeds from the offering.
 Redemptions of Preferred Stock and Warrants
 Union Texas also announced that its board of directors has authorized the redemption of all the preferred stock of Union Texas currently held by Allied-Signal for an aggregate redemption price of $200 million, together with accrued dividends to the redemption date. The board also authorized the redemption of all warrants of Union Texas currently held by Allied-Signal and affiliates of Kohlberg Kravis Roberts & Co. for an aggregate redemption price of $300 million. Union Texas intends to fund the redemptions primarily with borrowings under its new $650 million unsecured credit facility.
 Senior Note Offering
 In addition, Union Texas announced plans to file a registration statement for $100 million of senior notes of the company with an expected maturity of seven to 10 years. Net proceeds from the sale of the notes will be used to reduce the company's floating-rate bank debt.
 Registration statements relating to the securities have not been filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy either of the securities.
 -0- 9/23/92
 /CONTACT: Carol L. Cox of Union Texas Petroleum Holdings, Inc., 713-968-3258/
 (UTH ALD) CO: Union Texas Petroleum Holdings, Inc.; Allied-Signal Inc. ST: Texas, New Jersey IN: OIL SU: OFR


TS -- NY007 -- 2457 09/23/92 07:50 EDT
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Publication:PR Newswire
Date:Sep 23, 1992
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