Banks and thrifts are issuing debt and equity at a torrid pace.

On Thursday, Bank of New York Co. issued $300 million of subordinated debt.

The day before, Banco Bilbao Vizcaya of Spain issued $225 million of preferred stock, while Western Financial Savings Bank, Irvine, Calif, issued $125 million in subordinated junk bonds.

And no letup is in sight.

Citicorp on Thursday filed a shelf registration with the Securities and Exchange Commission to issue up to $3 billion of debt, equity, and other instruments.

Also this week, U.S. Bancorp filed for $500 million in subordinated debt, while Norwest Corp. filed for $800 million in securities.

Near Record

With the Bank of New York issue, banks have raised $4.6 billion in subordinated debt in the second quarter, just shy of the $4.9 billion record set in the second quarter of 1992, according to Securities Data Co.

And Banco Bilbao's deal increases bank preferred stock offerings in the quarter to a record $2.5 billion. The previous high was the $2.125 billion raised in the 1992 third quarter.

Bank of New York's 10-year subordinated debt was priced to yield 6.69%, 76.5 basis points over the 10-year Treasury note.

When Bank of New York last issued 10-year subordinated debt in November, the yield was 7.90% and the yield spread was 113 basis points.

Bank of New York's credit ratings were upgraded one notch by Standard & Poor's Corp. on June 3.

The issue was rated Baal by Moody's Investors Service Inc. and A-minus by Standard & Poor's.

Part of the proceeds will refinance $75 million of floating-rate notes due in 1996 that the bank recently called, said William Burns, vice president for financial planning.

The bank is also likely to call $66.2 million of floating-rate notes issued by Bank of New York Overseas, said Mr. Burns.

Donaldson, Lufkin & Jenrette Securities Corp. was lead underwriter of the issue.

DLJ also led Western Financial's $125 million subordinated debt offering, which was increased from $ 1 00 million. The issue was priced to yield 8.63%, 269.5 basis points over the 10-year Treasury note.

The issue is rated Ba3 by Moody's and BB-plus by Standard & Poor's.

The debt issue coincided with an offering of 3.7 million common shares by the savings bank's holding company, Westcorp. The issue, which was reduced from a four-million-share goal, was priced at $8.625 a share, to raise $31.9 million.

Banco Bilbao's preferred stock offering was increased to $225 million from $200 million. The dividend was set at 8%, at the low end of the range proposed by lead manager Kidder, Peabody & Co.

Issue Marks a First

The issue is the first U.S.-listed stock offering in which a portion was formally targeted for foreign investors. About one-third was sold in Spain, one-third in the United States, and the remainder in other foreign markets, mainly in Europe, said capital markets sources.

The $25-per-share issue carries ratings of Al from Moody's and A from Standard & Poor's.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.