Unocal to call 6¼% trust preferreds

New York, Dec. 3 - Unocal Corp. said it will call its remaining 6¼% trust convertible preferreds as part of a repurchase program.

The El Segundo, Calif., oil and gas exploration company has set aside $265 million to redeem the convertibles under a program to buy back up to $465 million of its securities.

"Unocal continues to enjoy high cash balances as a result of our strong operations and high commodity prices," said Charles R. Williamson, Unocal chairman and chief executive officer, in a news release. "By eliminating the preferred securities and reducing the number of outstanding common shares, we can increase stockholder value, while providing sufficient cash resources to fund our planned capital programs."

There are currently 5.2 million shares of the convertibles outstanding with a liquidation value of $261 million plus a $4 million call premium.

The redemption is expected to be completed by the end of the first quarter of 2005.

Unocal will also buy back up to $200 million of stock and will increase the stock repurchases using any funds left over from redeeming the convertible due to redemptions by holders.

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