First Union Corp.
First Union Corp. is in the market with a new issue of subordinated debt, a capital markets specialist said, but the yield is likely to be higher than originally planned. The deal was first marketed Wednesday, but before it could be priced, Moody's Investors Service downgraded the bank.
First Union's $150 million offering was initially expected to be priced at a yield of 9.2% to 9.25%, roughly 140 basis points over comparable Treasuries. But after First Union's subordinated debt rating was cut to Baa2 from A3, indications were for a yield about 20 basis points higher.