Unocal unit completes tender offer; purchases $507 million of debt securities
El Segundo, Calif., May 30, 1997 -- Unocal Corporation today announced the purchase by its Union Oil Company of California subsidiary of approximately $507 million in aggregate principal amount, or over 72 percent, of three of its outstanding issues of debt securities.
The $507 million in principal carried a weighted interest coupon of 9.27 percent, which yields an annual savings of approximately $47 million.
The purchases were made pursuant to Union Oil's previously announced tender offer to purchase up to $700 million of debt securities. The offer expired May 22.
Together with other debt repayments, the purchases substantially completed the company's program to reduce outstanding debt by $800 million, and were made with proceeds from the March sale of Unocal's West Coast refining, marketing and transportation assets.
The debt securities were purchased for an aggregate price of approximately $555 million, including a pre-tax premium of approximately $48 million over their aggregate carrying value. The premium, together with related costs, will be recorded as an extraordinary charge to Unocal's second quarter earnings.
Unocal Corporation is the world's largest independent exploration and production company with reserves of more than 9.8 trillion cubic feet of natural gas equivalent (1.6 billion barrels of oil equivalent) and major oil and gas production activities in Asia and the U.S. Gulf of Mexico.
Updated: May 1997