press release

Unocal Completes Exchange Offer; Calls Remaining Outstanding $3.50 Convertible Preferred Stock

El Segundo, Calif., Sept. 11, 1996 -- Unocal Corporation today announced the completion of its offer to exchange new, 6-1/4% Trust Convertible Preferred Securities of Unocal Capital Trust for shares of the company's $3.50 Convertible Preferred Stock. In addition, Unocal said it will redeem the remaining outstanding $3.50 Convertible Preferred Stock that was not tendered in the exchange offer.

Unocal said that 10,437,873 of the 6-1/4% Trust Convertible Preferred Securities, which have an aggregate liquidation value of nearly $522 million, were exchanged for 9,352,962 shares of the $3.50 Convertible Preferred Stock.

Unocal said it is calling for redemption the remaining 897,038 shares of the $3.50 Convertible Preferred Stock. These shares will be redeemed on Oct. 11, 1996, for a cash payment of $52.936 per share (includes an amount equal to the accumulated dividend from July 15, 1996, through Oct. 10, 1996), unless the holder converts the preferred shares into Unocal common stock prior to the close of business on Oct. 11, 1996.

Each share of $3.50 Convertible Preferred Stock is convertible into 1.626 shares of Unocal common stock.

Updated: September 1996