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.
