UNITED CITIES COMPLETES OFFERING AND BOND ISSUANCE
UNITED CITIES COMPLETES OFFERING AND BOND ISSUANCE BRENTWOOD, Tenn., May 14 /PRNewswire/ -- United Cities Gas Co.
(NASDAQ: UCIT), the Nashville-area based natural and propane gas distributor, announced today it raised more than $38 million during May through a public stock offering and private placement of bonds.
James B. Ford, senior vice president and treasurer, reported that United Cities' common stock offering netted the company $17.5 million in proceeds that will be used to finance capital improvements throughout a nine-state service territory. "United Cities continues to receive excellent support from the financial community, as evidenced by the strong demand for our stock," said Ford. "The underwriters exercised the entire over-allotment option, selling 1,380,000 shares of common stock at $13.25 per share." Ford reported that virtually all of the shares issued during the offering went to the retail market. "Our typical shareholder is a small investor looking for a a low-risk investment with an excellent long-term return. We are pleased that so many of our current shareholders purchased additional shares through this offering and welcome our new shareholders," said Ford. During May, the Company also privately placed $20 million in new Series U First Mortgage Bonds, that were issued at 8.77 percent interest and due May 1, 2022. United Cities Gas Company distributes natural and propane gas to approximately 295,000 customers in nine states. The company is also engaged in other energy-related activities. -0- 5/14/92 /CONTACT: Linda Kelley of United Cities Gas Company, 615-373-0104/ (UCIT) CO: United Cities Gas Company ST: Tennessee IN: UTI SU: OFR
CM -- CH003 -- 0128 05/14/92 10:40 EDT
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|Date:||May 14, 1992|
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