IRVING, Texas - GTE Corp. announced today that its GTE California subsidiary has closed the sale of $225 million of 10-year debentures. The transaction was underwritten by J.P. Morgan and four minority-owned investment banks: Blaylock & Partners, Pryor McClendon Counts & Co., Utendahl Capital Partners, and The Williams Capital Group.
This transaction represents an expansion of GTE's policy of involving minority-owned firms in capital markets activities in recognition of the unique distribution capabilities of these banks. GTE has utilized minority-owned investment banks in selling groups in the past, but this is the first time these institutions have co-managed a negotiated offering for GTE.
"We are very excited about the success of this transaction, which we hope will create future opportunities between GTE and our minority-owned investment banking partners," said GTE Chief Financial Officer, Dan O'Brien. "The co-managers focused on smaller investment accounts that previously had not invested in GTE. As a result, we were able to upsize the transaction at a very attractive price while broadening our investor base."
The debentures were issued with a 5.5% coupon by GTE California, GTE's wholly-owned telephone operating company with 5.4 million access lines primarily in the southern California area. The subsidiary is rated AA- and A2 by Standard & Poors and Moody's, respectively.