In an unusual transaction, Chase Manhattan Corp. tapped its own subsidiary to underwrite a $200 million issue of subordinated debt on Tuesday.

This was the first time Chase Securities Inc. managed a straight debt issue for its parent.

The 12-year subordinated notes were priced to yield 6.64%, 90 basis points over the 10-year Treasury note.

Moody's Raises Ratings

It was Chase's second debt offering since Moody's Investors Service Inc. raised its credit ratings on July 2, according to Securities Data Corp. Moody's raised Chase's subordinated debt to Baa2 from Baa3.

Since Moody's placed Chase's debt on review for possible upgrade in late April, the yield spread on its 10-year bonds has tightened by 16 basis points to 86 basis points, according to First Boston Corp. The issue is rated BBB-plus by Standard & Poor's Corp.

Chase's latest issue is noncallable for life.

Elsewhere, Continental Bank Corp. issued $150 million of five-year floating-rate notes. They were priced to float 50 basis points over the three-month London interbank offered rate. Merrill Lynch International Ltd. was lead manager.

The issue was rated Baa3 by Moody's and BBB-minus by Standard & Poor's.

A capital markets source said a $250 million issue of 12-year subordinated debt by Mellon Bank could be priced as early as today.

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