DOMINION <D> UNIT SELLS 30-YEAR BONDS
Virginia Electric and Power Co, a unit
of Dominion Resources Inc, is raising 100 mln dlrs via an
offering of first and refunding mortgage bonds due 2017
yielding 9.89 pct, said sole manager E.F. Hutton and Co Inc.
    Hutton led a group that won the bonds in competitive
bidding. It bid them at 99.376, representing a net interest
charge to the company of 9.94 pct.
    The underwriter set a 9-7/8 pct coupon and reoffering price
of 99.85 to yield 123 basis points more than comparable
Treasury securities. Non-refundable for five years, the bonds
are rated A-1 by Moody's and A-plus by Standard and Poor's.
    The gross spread is four dlrs and the reallowance is 2.50
dlrs, bookrunner Hutton said of the Virginia Electric deal.
    Virginia Electric last visited the domestic debt market in
October 1986 when it sold 100 mln dlrs of same-rated,
same-maturity 9-1/4 pct bonds. That issue was priced to yield
9.27 pct, or 141 basis points over Treasuries.
 Reuter
