RJR NABISCO <RJR> SELLS SINKING FUND DEBENTURES
RJR Nabisco Inc is raising 500 mln
dlrs via an issue of sinking fund debentures due 2017 yielding
8-3/4 pct, said lead manager Shearson Lehman Brothers Inc.
    The debentures have an 8-5/8 pct coupon and were priced at
98.675 to yield 115 basis points over the off-the-run 9-1/4 pct
Treasury bonds of 2016.
    Non-refundable for 10 years, the issue is rated A-1 by
Moody's and A by Standard and Poor's. A sinking fund beginning
in 1998 to retire annually five pct of the debentures can be
increased by 200 pct at the company's option.
    Dillon, Read and Co Inc co-managed the deal.
 Reuter
