UNION CARBIDE <UK> SELLS NOTES YIELDING 9.90 PCT
Union Carbide Corp is raising 350 mln
dlrs through an offering of senior subordinated notes due 1994
yielding 9.90 pct, said sole manager First Boston Corp.
    The notes have a 9-3/4 pct coupon and were priced at 99.24
to yield 290 basis points more than comparable Treasury paper.
    Non-callable for five years, the debt is rated B-1 by
Moody's and BB-minus by Standard and Poor's. The issue was
increased from an initial offering of 250 mln dlrs.
    Proceeds from the note sale and a 300 mln dlr issue of
convertible subordinated debentures will be used to repay
indebtedness incurred by Carbide's recapitalization plan.
interest expense, strengthen the company's financial condition
and increase operating flexibility, it said in a release.
    The company's convertible subordinated debentures were
priced late Tuesday by lead manager First Boston. The
debentures were given a 7-1/2 pct coupon and par pricing.
    They are convertible into Carbide's common stock at 35.50
dlrs per share, representing a premium of 23.47 pct over the
stock price when terms on the debt were set. The convertibles
are rated B-2 by Moody's and BB-minus by S and P.
 Reuter
