Franklin Universal Trust Announces Agreement for Sale of Notes
|From:||Franklin Templeton Distributors, Inc.|
August 17, 1998, SAN MATEO, CA -- Franklin Universal Trust (NYSE: FT), a closed-end investment company managed by Franklin Advisers, Inc., announced today that it had entered into an agreement with Principal Life Insurance Company, CIGNA Investments Inc. and The Canada Life Assurance Company to sell $75,000,000 of senior notes due on August 31, 2003 in a private placement with the three companies. The notes will bear interest at a fixed rate to be determined on August 20, 1998 which will be equal to .55% plus the yield to maturity at such time on the 5-3/4% U.S. Treasury obligations due August 2003.
The Fund will apply the proceeds from the sale of the notes to the refinancing of its $75,000,000 of 5-5/8% senior fixed rate notes due on September 1, 1998. The Fund will be subject to financial and other covenants which are similar to the covenants contained in the indenture for the 5-5/8% notes which are being retired.
Franklin Advisers, Inc. is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE:BEN), whose primary business is the Franklin Templeton Group with more than $236 billion in assets under management as of June 30, 1998. Franklin's headquarters are located at 777 Mariners Island Blvd., San Mateo, CA 94404.