New debt issues so far this month total $15.3 billion, compared to the $25.3 billion tally that made May the year's second biggest month to date, IDD Information Services said last week.
IDD figures show 92 issues in June through last Thursday totaling $15.3 billion.
May saw 170 issues totaling $25.3 billion. Both months still fall well south of January's $36.6 billion of new debt, IDD said.
The figures ar for total non-convertible debt, including agency issues but excluding mortgage- and asset-backed offerings.
Mike Bassett, a vice president at Princeton, N.J.-based Stone & McCarthy Research Associates, said the odds were against June issues catching up with May's total.
"It's possible, but there's slightly more reason to think not than so," Mr. Bassett said. "We've just worked through a pile of well-expected deals," he said, citing the large number of recent high-yield offerings.
Agency offerings may also subside a bit, Mr. Bassett said, noting their recent trend toward set-up notes. Those notes carry one coupon until their call date, then move up to a higher one following that date, market sources have explained.
"Anytime you get something that's really been done over and over again in the space of a few weeks, you've kind of filled the immediate demand," he said.
In the high-yield market late Thursday, more than $1 billion of Comcast Cellular senior participating zero coupon notes were priced in two tranches due 2000. Donaldson, Lufkin & Jenrette Securities Corp. lead managed the offering.
The notes are callable after March 5, 1995, at a redemption price of the higher of either a premium to the notes' accredited value or 35% of the private market value of Comcast's subsidiary. Comcast Cellular Communications Inc. Investors can put the bonds back to the company on March 5, 1998, on those same terms.
The series A portion was priced at 4.571 to yield 11.74% to maturity or 12% yield to put. The series B piece was priced at 42.704 to yield 11.37% to maturity or 11.5% yield to put.
Series A pays in cash or in shares of Comcast class A special common stock. Series B pays in cash only.
Metromedia sold the notes and will receive all proceeds, a source familiar with the offering said. Metromedia was issued the notes by Comcast on March 5 as partial compensation for the sale of its cellular telephone subsidiary, Metrophone, to Comcast, he said. The sale also included cash, the source said.
Also yesterday, Stone Container Corp. issued $150 million of senior subordinated notes due 1997. Non-callable for three years, the notes were priced at par to yield 10.7%. Moody's Investors Service rates the offering B2, while Standard & Poor's Corp. rates it B-plus. Salomon Brothers Inc. managed the offering.
In secondary trading yesterday, investment-grade bonds fell 1/8 point as did high-yield bonds. One junk trader speculated that investors were selling lower coupon debt to make way for new issues.
Friday's Ratings
Standard & Poor's has downgraded Environdyne Industries Inc.'s $91 million of 13.5% subordinated notes due 1996 to D from C reflecting a missed June 15 interest payment. The rating agency downgraded the company's $200 million of 14% senior subordinated debentures on Feb. 3, also due to nonpayment of interest, according to a Standard & Poor's release.
The rating of C on Environdyne's $174 million of 14.5% senior discount notes was affirmed because accrual of interest is currently proceeding on schedule. That $174 million figure is face value as of Dec. 26, 1991, the release says.
"Environdyne has proposed a refinancing plan, which involves an exchange of three years of interest payments due to subordinated bondholders for an equity position in the company," the release says. The agency said it will monitor refinancing negotiations progress.
Standard & Poor's has upgraded Mark IV Industries Inc.'s senior debt to BB from BB-minus and subordinated debt to B-plus from B. The action affects about $390 million of debt.
"The rating upgrades reflect an improving financial profile for this leading producer of hoses and belts for automotive and industrial markets, audio systems, and mass transit and traffic control products," the Standard & Poor's release says. "Management is now pursuing a far less aggressive financial policy, following a sustained period of very rapid growth, largely accomplished through debt-financed acquisitions."
Moody's has given a Baal rating to Society Corp.'s $200 million subordinated debt issue, the agency said in a release.
"Recently, Society Corp. merged with Ameritrust, which has sizable problematic real estate and HLT exposures," the Moody's release says. "Nevertheless, Moody's feels that cost savings from the in-market merger should offset higher credit expenses that may originate from some of Ameritrust's assets."
