Loews calls $1.15 billion 3 1/8% exchangeable notes

By Caroline Salls

Pittsburgh, March 22 - Loews Corp. said it will redeem all its $1.15 billion outstanding 3 1/8% exchangeable subordinated notes due 2007 on April 21 at a redemption price of 100.9375% of the principal amount plus accrued interest.

The notes can be exchanged into shares of Diamond Offshore Drilling Inc. common stock until the close of business on April 21 at an exchange rate of 15.3757 shares per $1,000 principal amount of notes.

Diamond Offshore Drilling stock closed at $49.94 on Tuesday.

The company said it plans to fund the redemption price from its working capital, although it may determine to offer and sell new debt securities before or after the redemption to fund a portion of the redemption price.

Loews is a New York-based energy, financial services and tobacco conglomerate.

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