First Interstate Delays Debt Issue
First Interstate Bancorp said Friday that it is postponing a planned debt offering because news reports about its financial condition made the markets less receptive to the issue.
As reported by Reuters, the Los Angeles, banking company indicated in its quarterly 10Q filing that it may have higher credit losses in second-half 1991 because of uncertainties in the California real estate market.
Jittery Market Mood
"It was just a question of spreads," said spokesman Simon Barker Benfield.
Traders said First Interstate's bonds were unchanged after the news, but the bank felt the markets were to jittery to price a deal. They felt investors would have to be paid a higher interest rate than was prudent, they said.
The deal was to be $150 million in subordinated debt.
The company had been planning to meet with Wall Street firms Friday morning to decide on an underwriter.
One syndicate manager said the deal might come back this week.