Like its homologs in higher eukaryotes, the U2
snRNA in Schizosaccharomyces pombe is transcribed
by RNA polymerase II and is not polyadenylated. Instead,
an RNA stem-loop structure located downstream of the U2
snRNA coding sequence and transcribed as part of a 3′
extended precursor serves as a signal for 3′-end
formation. We have identified three mutants that have temperature-sensitive
defects in U2 snRNA 3′-end formation. In these mutants,
the synthesis of the major snRNAs is also affected and
unprocessed rRNA precursors accumulate at the restrictive
temperature. Two of these mutants contain the same G-to-A
transition within the pac1 gene, whereas the third
contains a lesion outside the pac1 locus, indicating
that at least two genes are involved. The pac1+
gene is codominant with the mutant allele and can rescue
the temperature-sensitive phenotype and the defects in
snRNA and rRNA synthesis, if overexpressed. In vitro,
Pac1p, an RNase III homolog, can cleave a synthetic U2
precursor within the signal for 3′-end formation,
generating a product that is a few nucleotides longer than
mature U2 snRNA. In addition, U2 precursors are cleaved
and trimmed to the mature size in extracts made from wild-type
S. pombe cells. However, extracts made from pac1
mutant cells are unable to do so unless they are supplemented
with purified recombinant Pac1p. Thus, the 3′ end
of S. pombe U2 snRNA is generated by a processing
reaction that requires Pac1p and an additional component,
and can be dissociated from transcription in vitro.