BRADENTON, Fla. - The Florida Gas Utility on Monday unwound a prepaid gas deal by redeeming $691.7 million of variable-rate bonds underwritten by UBS Investment Bank. And it did so at the behest of the bank, which also was the gas supplier in the transaction.

The deal represented UBS' first foray into the prepay natural gas market when the bonds were sold in September 2006, and the unwinding resulted in what could be considered a highly favorable outcome for FGU when compared to what other issuers have experienced when restructuring variable-rate bonds and terminating swaps.

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