TIME <TL> SINKING FUND DEBENTURES YIELD 8.84 PCT
Time Inc is raising 250 mln dlrs via
an offering of sinking fund debentures due 2017 yielding 8.84
pct, said lead manager Salomon Brothers Inc.
    The debentures have an 8-3/4 pct coupon and were priced at
99.055 to yield 115 basis points over the off-the-run 9-1/4 pct
Treasury bonds of 2016. First Boston co-managed the deal.
    The issue is non-refundable for 10 years. A sinking fund
starting in 1998 to retire annually five pct of the debentures
can be upped by 200 pct at the company's option, giving them an
estimated minimum life of 13.85 years and maximum of 20.5
years. The debt is rated Aa-3 by Moody's and A-plus by S/P.
 Reuter
