[Federal Register Volume 62, Number 105 (Monday, June 2, 1997)]
[Notices]
[Pages 29755-29756]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14210]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-26720]


Filings Under the Public Utility Holding Company Act of 1935, as 
amended (``Act'')

May 23, 1997.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated thereunder. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendments thereto is/are available for public 
inspection through the Commission's Office of Public Reference.
    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by June 16, 1997, to the Secretary, Securities and Exchange 
Commission, Washington, D.C. 20549, and serve a copy on the relevant 
applicant(s) and/or declarant(s) at the address(ea) specified below. 
Proof of service (by affidavit or, in case of an attorney at law, by 
certificate) should be filed with the

[[Page 29756]]

request. Any request for hearing shall identify specifically the issues 
of fact or law that are disputed. A person who so requests will be 
notified of any hearing, if ordered, and will receive a copy of any 
notice or order issued in the matter. After said date, the 
application(s) and/or declaration(s), as filed or as amended, may be 
granted and/or permitted to become effective.

The Southern Company (70-8961)

    The Southern Company (``Southern''), 270 Peachtree Street, Atlanta, 
Georgia 30303, a registered holding company, has filed a declaration 
pursuant to sections 12(b) of the Act and rule 45 and 54 thereunder.
    Southern proposes that, from time-to-time on or before December 31, 
2003, it may guarantee indebtedness incurred by Southern Company 
Services, Inc. (``Services''), its subsidiary service company, in an 
aggregate outstanding amount of up to $200 million under one or more of 
the following borrowing methods.
    Services may issue and sell new notes (``Proposed Notes'') to a 
lender or lenders other than Southern. The Proposed Notes would be 
issued under an agreement(s) with the lender(s) and may be guaranteed 
by Southern as to principal, premium, if any, and interest. The 
proposed notes may have terms of up to 30 years, contain sinking funds 
and bear interest at a rate or rates not to exceed 3\1/2\ percentage 
points per annum over the rate for United States Treasury securities of 
corresponding maturity at the time the lender(s) commit to purchase the 
particular issue. Services may engage an agent to place the proposed 
notes for a commission not in excess of \1/2\ of 1% of the principal 
amount borrowed.
    Services also may effect short-term or term-loan borrowings under 
one of more revolving credit commitment agreements. Short-term 
borrowings under such agreement(s) would have a maximum maturity of one 
year and term loans would have maturities up to 10 years. It is 
expected that the borrowings would be evidenced by a ``grid'' 
promissory note to be dated the date of the initial borrowing and the 
date of each borrowing thereafter when a ``grid'' short-term or term-
loan note, as they case may be, is not outstanding (``Grid Notes'').
    The Grid Notes would bear interest at rates to be negotiated with 
the lending bank or banks. Borrowings under the proposed revolving 
credit commitment agreements would be at rates per annum not in excess 
of: (1) The lender's prime or base (``Prime'') rate plus 1%; (2) the 
lender's certificate of deposit (``CD'') rate plus 1\3/4\%; and (3) the 
lender's LIBOR plus 2%. Services also may negotiate separate rates for 
particular borrowings, an option Services would pursue only if the 
resulting rates are considered more favorable than those otherwise 
available under the commitments. In addition, it is expected that 
Services will be obligated to pay a commitment fee not in excess of \1/
2\ of 1% per annum of the unused portion of each lending bank's 
commitment.
    Services also may effect short-term borrowings from certain banks 
and other institutions. These borrowings will be evidenced by notes to 
be dated as of the date of such borrowings and to mature in not more 
than 10 years after the date of issue, or by ``grid'' notes evidencing 
all outstanding borrowings from each lender to be dated as of the date 
of the initial borrowing and to mature in not more than 10 years after 
the date of issue. Generally, borrowings will be prepayable in whole, 
or in part, without penalty or premium, and will be at rates per annum 
not in excess of: (1) The Prime rate; (2) the CD rate plus 1%, and 
LIBOR plus 1%. Services also may negotiate separate rates for, and/or 
agree not to prepay, particular borrowings if it is considered more 
favorable to Services. Compensation for the credit facilities, not to 
exceed \1/2\ of 1% per annum of the amount of the facilities, is 
expected to be provided by balances or comparable fees in lieu of 
balances.

Unitil Corporation (70-9047)

    Unitil Corporation (``Unitil''), 6 Liberty Lane West, Hampton, New 
Hampshire 03842-1270, a registered holding company, has filed a 
declaration under section 12(b) of the Act and rule 45 thereunder.
    Unitil proposes to guarantee the lease payment obligations of its 
service company subsidiary, Unitil Service Corporation (``Unitil 
Service''), to Unitil Realty Corp. (``Unitil Realty''), its real estate 
subsidiary company, under a lease agreement (``Lease''), in an amount 
not to exceed $12 million.
    In August 1996, Unitil Realty completed construction of a new 
corporate office facility for Unitil Service in Hampton, New Hampshire 
(``Facility'') at a cost of approximately $9 million. Unitil Service is 
the only tenant of the Facility.
    Unitil Realty has received a commitment for permanent debt 
financing for the Facility. In order for Unitil Realty to obtain the 
most favorable financing rate, Unitil proposes to guarantee Unitil 
Service's obligations under the Lease. Under the Lease, Unitil Service 
is obligated to pay rent payments covering the cost of principal and 
interest to Unitil Realty, return on equity for Unitil Realty and 
certain other expenses such as property taxes, insurance, utilities, 
repairs, maintenance, leasehold improvements and alterations.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-14210 Filed 5-30-97; 8:45 am]
BILLING CODE 8010-01-M