Pennsylvania's 50 Million

The first major piece of new public railroad financing since President Roosevelt took office was announced last week when Pennsylvania Railroad sold to Kuhn. Loeb & Co. for public offering a $50,000,000 4 1/2% bond issue, maturing in 1984. Proceeds are to be used for "proper corporate purposes." Like all railroad securities the issue was exempt from the Securities Act, though its underwriters were subject to the equally drastic Investment Bankers Code. The prospectus issued by Kuhn, Loeb contained Pennsylvania Railroad's condensed income statement for ten years and a letter from President William Wallace Atterbury reporting that the railroad is not indebted to RFC or the Railroad Credit Corp., has no outstanding bank loans. Kuhn. Loeb purchased the bonds at 95, will offer them to the public this week at 97 1/2 and interest.

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