Xerox $500 million dollar and euro notes talked in 10¾% area

By Paul A. Harris

St. Louis, Mo., Jan. 10 - Xerox Corp.'s $500 million offering of dollar and euro senior notes due 2009 is expected to yield in the 10¾% area, according to price talk that emerged Thursday, a syndicate source said.

Pricing is now set for Monday morning; some market observers had been expecting Friday.

"We want to price the dollar and the euro at the same time, and it just didn't seem feasible to do that on Friday," the syndicate source explained. "So we're going to do it on Monday morning so we can have both markets (New York and London) participate at the same time."

The source told Prospect News that although the sizes of the dollar and euro components of the deal have not yet been determined, 10¾% area is the price talk for both.

Deutsche Banc Alex. Brown and J.P. Morgan are joint bookrunners on the Rule 144A notes. Co-managers include Salomon Smith Barney, Merrill Lynch & Co., Banc One Capital Markets, HSBC, RBC, Fleet Securities, ABN Amro, and UBS Warburg.

The notes are rated BB by Standard & Poor's and Fitch while Moody's Investors Service rates Xerox's outstanding debt Ba1.

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