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Pricing Supplement Number 2, dated December 14, 1998 Rule 424(b)(3)
(To Prospectus dated December 7, 1998 and File Nos. 333-00801 and 333-66981
Prospectus Supplement dated December 8, 1998) CUSIP: 86732PAC2
SUNDSTRAND CORPORATION
MEDIUM-TERM NOTES - FIXED RATE NOTE
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<CAPTION>
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<S> <C> <C> <C>
PRINCIPAL AMOUNT: $10,000,000.00 INTEREST RATE: 5.59% per annum
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AGENTS DISCOUNT OR COMMISSION: $15,000.00 STATED MATURITY DATE: MARCH 15, 2000
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NET PROCEEDS TO ISSUER: $9,985,000.00 ORIGINAL ISSUE DATE: DECEMBER 17, 1998
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INTEREST PAYMENT DATES: Each June 1 and December 1, and on the Stated Maturity Date
REDEMPTION:
X The Notes cannot be redeemed prior to the Stated Maturity Date.
- ---
The Notes may be redeemed prior to the Stated Maturity Date.
- ---
Initial Redemption Date: not applicable
Initial Redemption Percentage: %
-----
Annual Redemption Percentage Reduction: % until Redemption
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Percentage is 100% of the principal amount
OPTIONAL REPAYMENT:
X The Notes cannot be repaid prior to the Stated Maturity Date.
- ---
The Notes may be repaid prior to the Stated Maturity Date at the option
- --- of the holder of the Notes.
Optional Repayment Dates: not applicable
Repayment Price: %
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CURRENCY:
Specified Currency: U.S. dollars
(If other than US dollars, see attached)
Minimum Denominations: not applicable
(Applicable only if Specified Currency is other than US dollars)
ORIGINAL ISSUE DISCOUNT: Yes X No
--- ---
Total amount of OID: not applicable
Yield to Maturity: not applicable
Initial Accrual Period: not applicable
FORM: X Book Entry Certificated
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AGENTS: X Merrill Lynch & Co. X First Chicago Capital Markets, Inc.
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X NationsBanc Montgomery Securities LLC Other:
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AGENTS ARE ACTING IN THE CAPACITY AS INDICATED BELOW:
As Agent: The Notes are being offered at a fixed initial offering price
- ---- of % of Principal Amount
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X As Principal:
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X The Notes are being offered at varying prices related to prevailing
--- market prices at the time of resale.
The Notes are being offered at a fixed initial public offering price of
--- % of the principal amount.
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OTHER PROVISIONS:
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The Agents have agreed to purchase, severally and not jointly, the
following aggregate principal amount of the Medium-Term Notes set forth
opposite their names below:
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Principal Amount of
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Name Medium-Term Notes
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<S> <C>
Merrill Lynch, Pierce, Fenner & Smith
Incorporated....................................... $ 6,500,000
First Chicago Capital Markets, Inc............................. 1,750,000
NationsBanc Montgomery Securities LLC.......................... 1,750,000
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Total.................................................. $10,000,000
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