GTE California issues $225 million of 10-year debentures; J.P. Morgan and four minority-owned investment banks co-manage the offering.
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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.
With 1997 revenues of more than $23 billion, GTE is one of the world's largest telecommunications companies and a leading provider of integrated telecommunications services. In the United States, GTE provides local service in 28 states and wireless service in 17 states; nationwide long-distance and internetworking services ranging from dial-up Internet access for residential and small-business consumers to Web-based applications for Fortune 500 companies; as well as video services in selected markets.
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Additional information about GTE can be found at http://www.gte.com