Exxon in $NZ notes

Press, 21 February 1987, Page 26

Exxon in $NZ notes

NZPA Washington The Exxon Capital Corporation, part of Exxon Corporation, is offering SNZ2SO million notes through lead underwriter First Boston.

The 18 per cent notes have been priced at par and mature on September 1, 1988. Exxon Capital has said it will swap the proceeds for US dollars at a rate substantially below Exxon Corp’s cost of commercial paper borrowing. The high interest rate on the notes, nearly three times as great as the company would pay for a domestic issue, compen- ! sates investors for the risk •that, the value- of New • Zealand dollars will decline in the future, according to a report in Washington.,. The issue yields about 2 percentage points less lhan New Zealand Government securities of a similar maturity, it said. And in New York, Sara Lee Corp is offering in the domestic debt market ,SNZIOO million of notes due March, 1988, said the lead ’ underwriter Bear, Stearns and Co.

The notes were given a 19 per,cent coupon and were priced at par to yield 140 basis points below comparable New Zealand rates. • Non-callable to maturity, the issue is rated AA--2 .by Moody’s Investors Service Inc. and AA by Standard and Poor’s Corp.