Chemical Banking Corp. said it will redeem all 3.83 million outstanding shares of its Series A adjustable-rate cumulative preferred stock at $50 a share plus accrued but unpaid dividends to Aug. 25, the redemption date.

The redemption of the $191.5 million of stock will be funded by a portion of the proceeds from a $350 million preferred offering completed in May. That issue carries a dividend yield of 8.375%, compared with 8.70% on the issue being redeemed.

Chemical will save $622,000 in annual interest payments, excluding underwriting costs, by switching preferred issues.

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