RJR Nabisco Seeks to Cut Interest Rates on $6 Billion of Debt
NEW YORK -- RJR Nabisco Inc. is seeking to reduce the interest rates it is paying on some of its $6 billion in bank debt.</br></br>According to individuals with knowledge of the negotiations, RJR approached its banks in recent weeks to try to renegotiate at least a portion of its debt.</br></br>An RJR spokesman said the company regularly talks to its banks and is always looking for ways to reduce the amount and average cost of its debt. A report about the latest negotiations first appeared in Friday's American Banker.</br></br>Recently, RJR reduced its debt outstanding by more than $7 billion, partly by selling more than $2.3 billion of stock and lower-yielding debt to investors.</br></br>RJR's banking group is led by units of Citicorp, Manufacturers Hanover Corp., Chemical Bank and Bankers Trust New York Corp. Spokesmen for each of the banks declined to comment on the talks.