Brockton Edison Co. Deal - Lehman Brothers Collection
Brockton Edison Co.
|Company Deal||Brockton Edison Company: 30,000 shares 6.40% preferred stock|
|Transaction Type||Preferred Stock / First Mortgage and Collateral Trust Bonds|
|Deal Description||Brockton Edison Company used the net proceeds from this deal to purchase at par $4,200,000 principal amount of debenture bonds and $800,000 par value of common stock of Montaup. The balance of the proceeds was applied to prepayment of the company's short-term bank loans. The bank loans were incurred for construction purposes. The proceeds of such bank loans, together with the company's funds from operations, were used to improve, strengthen, and expand the company's utility facilities. The debenture bonds and common stock of Montaup purchased by the company were issued and sold by Montaup to provide funds with which to pay a portion of Montaup's short-term bank loans. These loans were incurred primarily to finance in part the installation of a 100,000 kilowatt generating unit in its Somerset Station, which was expected to be placed in service in 1959.|
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