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Twentieth-Century Business Archives

Gulf States Utilities Company Deal - Lehman Brothers Collection

Gulf States Utilities Company

Company Deal$10,000,000 first mortgage bonds 3 3/8% series due 1983
Transaction TypeFirst Mortgage Bonds
Deal DescriptionGulf States Utilities Company used the net proceeds from this transaction to pay off $2,800,000 of short-term notes issued to provide funds for construction purposes, and to finance a portion of its construction program. To meet the requirements of the increase in volume of its business and to improve the ratio of generating capacity to maximum load, the company had been engaged since 1946 in a substantial construction program in its rapidly growing service area. The company found it necessary, during a portion of the period 1946-1952, to rely on purchased power, principally emergency or surplus power subject to availability, and operated low efficiency and old plants while it installed new modern generating capacity totaling 330,000 kilowatts name- plate rating. Also constructed during this period were new or increased capacity transmission and distribution lines, substations and equipment, including a 320-mile 138,000 volt backbone transmission spanning the system and interconnecting the company's principal generating stations. The Company had on order several new generating units.
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