$150 Million Fleet Note Issue
Fleet/Norstar Financial Group issued $150 million in 10-year notes this week through underwriters led by Salomon Brothers Inc.
The offering, which has a 9% coupon, was priced to yield 168 basis points more than comparable Treasury securities.
Fleet's note issue had been increased from $100 million, a sign of investor demand that contrasted sharply with the banking company's recent experience with a preferred stock offering. The company had tried to sell $125 million in preferred stock, but ultimately settled for a $100 million offering.
Market sources said investors are cooling to bank preferred stock because a number of nonbank issuers have tapped the market recently, offering potential buyers an array of options.