Unocal calls $261 million of 6¼% convertible preferreds

Pittsburgh, Aug. 18 - Unocal Corp. will redeem 5.2 million shares of its outstanding 6¼% trust convertible preferred securities for $265 million, including the 1¼% premium, accrued interest and unpaid distributions, according to a company news release.

The convertibles have a liquidation value of $261 million.

The redemption date is Sept. 20.

The partial redemption will eliminate the potential dilution of up to 6.1 million common shares, the release said. The redemption is expected to reduce Unocal's annual interest by more than $16 million.

The redemption is one aspect of a three-part $511 million cash expenditure program. The other aspects include a $100 million voluntary contribution to the company's completed U.S. pension plan and a buyback of up to $150 million of common stock.

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