The preholiday malaise continued in the new-issue market yesterday as just $487 million of debt - much ofit from a federal agency was priced

by late day.

Yesterday's biggest deal was Home Holdings Inc.'s two-part issue totaling $280 million. The offering contained a provision that would add 75 more basis points of yield on each tranche if Home Holdings' ratings are lowered to non-investment grade, sources familiar with the deal said. Investors would give back the extra yield if the company regained investment grade, status.

The first tranche consisted of $ 1 00 million of 7% senior notes due 1998. The non-callable notes were priced at 99.153 to yield 7.205%, or 200 basis points more than comparable Treasuries.

The second piece consisted of $180 million of 71/8% senior notes due 2003. The noncallable notes were priced at 98.784 to yield 8.054%, or 225 basis points more than comparable Treasuries. Moody's Investors Service rates the offering Baa3, while Standard & Poor's Corp. rates it BBB-minus. Lehman Brothers was the lead manager for the offering.

Mary Taylor, senior vice president of communications at Home Holdings, said the company was advised to include the extra yield provision to better ensure that the deal would demonstrates the confidence investors have in our restructuring process."

The Los Angeles-based department store operator filed for Chapter 11 in February 1991 and emerged from bankruptcy in October 1992.

Carter Hawley Hale will use the $138.7 million of proceeds from the offering to make capital available to fund the company's business plans, including store modernization. Until the capital expenditures are made, proceeds will be used to pay back some debt under the company's revolving credit facilities.

The notes pay interest semiannually beginning on June 30, 1994, and can be redeemed at the company's option, entirely or in part, at any time on or after Dec. 31, 1998. The notes will be convertible into the company's common stock beginning March 21, 1994, at a $12.19 per share conversion price.

Carter Hawley Hale operates 83 department stores under the names of The Broadway, Emporium, and Weinstocks. It has annual sales of more than $2.1 billion.

New issues

Federal Home Loan Banks reportedly issued $107 million of 5.47% debentures due 1998 at par. Noncallable for a year, the debentures were priced to yield 25 basis points over comparable Treasuries. Morgan Stanley & Co. managed the offering.

Federal Home Loan Banks reportedly sold $50 million of 5.95% debentures due 2000. Noncallable for two years, the debentures were priced to yield 40 basis points over the 8.5% Treasuries of November 2000. Salomon Brothers managed the offering.

Federal Home Loan Banks reportedly issued $50 million of 6.41% notes due 2003 at par. Noncallable for three years, the notes were priced to yield 58 basis points over comparable Treasuries. Citicorp Securities Inc. managed the offering.

Rating News

Standard & Poor's has downgraded Corner Peripherals Inc.'s subordinated debt to B from BB-plus and removed the rating from CreditWatch, where it was placed on Oct. 25.

The implied senior rating is BB-minus. Roughly $500 million of rated debt is affected.

"The downgrade reflects a weakened financial profile following a major share repurchase and acquisition in 1992, three consecutive quarterly operating losses in 1993, and a $372 million fiscal third-quarter restructuring charge to write down goodwill and to remove excess capacity and costs," Standard & Poor' said in a release.

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