More than $1 billion of junk debt could be offered this week, including $650 million from American Standard Inc.

The New York-based company is scheduled to offer $200 million of senior subordinated notes due 2001 and senior subordinated discount debentures due 2005, proceeds from which should total $450 million.

Both offerings are expected to arrive today through BT Securities Corp. and First Boston Corp.

Price talk calls for the senior subordinated notes to yield 10% to according to Brian Bogart, a group vice president at Duff & Phelps/MCM Investment Research Co.

While Bogart said he thinks the notes are "okay" at 10 1/4%, "at 101 think they are a little on the rich side." Later in the day, a BT spokesman said price talk on the notes was 10%.

Price talk calls for the discount debentures to yield 10 1/2% to 10 3/4% Bogart said.

"We think the 50 basis point spread of the senior subordinated piece is not sufficient," he said. "We'd rather see 75."

"Overall, we don't have any major concerns about their credit quality, but their results have been a little weaker than expected," he said. That weakness stemmed from softness in the company's European markets, Bogart said.

Also expected this week are deals by Foamex, Station Casinos, Acme Holdings, and Pilgrim's Pride. Foamex is expected today to issue $150 million of senior secured notes due 2000 through Donaldson, Lufkin & Jenrette Securities Corp. and Salomon Brothers Inc.

Station Casinos is expected to offer $100 million of senior subordinated notes due 2003. Salomon Brothers and Donaldson, Lufkin & Jenrette will underwrite that transaction, which is expected Monday or Tuesday.

Acme was expected to offer $75 million of senior notes due 2000 through Citicorp Securities Markets Inc. either late Friday or this week. Pilgrim's Pride is expected to offer $100 million of senior subordinated notes due 2003 through Donaldson Lufkin.

On the high-grade side, "A lot of guys have been looking at the market," one syndicate desk member said. While he knew of no specific deals scheduled for this week, he said Boeing Corp. is rumored to be looking to issue.

If the Treasury long bond rallies back to 6.75%, issuers could see a last chance to get those low rates and rush in, the source said. Or, if the long bond stays around 7%, treasurers might begin issuing on a "defensive basis."

In other news, QFB Partners and its subsidiaries, including Petrolane, on Friday filed voluntary Chapter 11 petitions in U.S. Bankruptcy Court for New York's Southern District seeking confirmation of a reorganization plan.

The filing came after QFB received necessary acceptances for the proposed prepackaged reorganization plan, according to a release issued jointly by QFB Partners and UGI Corp.

Upon the plan's consummation, AmeriGas Inc., a wholly owned subsidiary of UGI Corp., and Petrolane's 13 1/4% senior subordinated debentures due 2001 will own Petrolane.

QFB and its subsidiaries, including Petrolane, sought approval of the plan from Petrolane's debentures' holders' of QFB's and Petrolane's senior secured debt, and the holders of the equity securities in QFB and its subsidiaries. The solicitation expired May 17.

Petrolane's creditors "overwhelmingly" accepted the plan, which won unanimous acceptance from its equity holders, according to the release.

Holders of about $335 million principal amount of the $375 million total principal amount of Petrolane debentures voted, and of that group, 98% voted in favor of the prepackaged plan, the release says.

"We are pleased by the high level of support from Petrolane's creditors for the prepackaged reorganization and sale of Petrolane," James A. Sutton, UGI's chairman and chief executive officer, said in a release. "The prepackaged reorganization of Petrolane will minimize the impact on Petrolane's operations and ensure that Petrolane can continue to meet its obligations to its employees, customers, and suppliers throughout the restructuring process."

The proposed acquisition and restructuring consummation hinges on several factors, including regulatory approvals, and the amount of cash and working capital of QFB and its consolidated subsidiaries, including Petrolane, as of the closing date of the restructuring and bankruptcy court approval.

Upon the prepackaged plan's consummation, all $375 million of Petrolane's bonds will be canceled. In exchange, a series of transactions will give bondholders 90% of the reorganized Petrolane's common stock and warrants to purchase 1,250,000 shares of UGI common stock at $24 a share exercise price. The warrants will be effective only under certain circumstances and only after June 30, 1996.

Within 190 days of the restructuring's consummation, bondholders will also receive an aggregate of $51.35 million in cash, subject to some downward adjustment, in exchange for 20% of Petrolane's outstanding common stock.

As announced earlier, bondholders will also have certain exchange rights relating to their Petrolane stock. From Jan. 1, 1997, to Dec. 31, 2001, they will be able to exchange some or all of their Petrolane stock for up to 26% of the AmeriGas common stock outstanding as of the restructuring's effective date. AmeriGas will have the right from Jan. 1, 1998, to December 31, 2002, to require such an exchange.

Before the exchange rights become exercisable, the bondholders are also entitled to receive payments equal to the amount of dividends they would have received if they held 11% of the AmeriGas common stock outstanding as of the restructuring's effective date.

AmeriGas will keep the remaining 30% of the reorganized Petrolane's common stock.

As announced earlier, terms of QFB and Petrolane's senior secured debt will be changed and certain holders of that debt will provide a new $73 million revolving credit facility to the new Petrolane.

That facility, however, hinges on certain conditions. Management of Petrolane would be transferred from Suburban Propane, the propane marketing division of Quantum, to AmeriGas and UGI.

Elsewhere, representatives of E-II Holdings Inc. and its Official Committee of Unsecured Creditors announced plans to file court papers Friday describing modifications to the company's reorganization plan that would enhance creditors' overall recovery.

The company is seeking to have its plan confirmed at a hearing scheduled to begin today in Federal Bankruptcy Court in New York.

In secondary trading, spreads on high-grade bonds ended flat to slightly tighter in lackluster activity. High-yield bonds finished quiet and unchanged.

New Issues, Ratings

Torchmark reportedly issued $200 million of 7.875% senior notes due 2023. The noncallable notes were priced at 98.92 to yield 7.97% or 93 basis points over comparable Treasuries. Moody's Investors Service rates the offering A3, while Standard & Poor's Corp. rates it A-plus. Morgan Stanley & Co. managed the offering.

Standard & Poor's has downgraded Olympia & York Water Street Finance Corp.'s $435 million of 8.25% secured notes due 1996 and $113.3 million zero coupon secured notes due 1996 to D from B, and concurrently withdrew' the ratings.

Standard & Poor's has also removed the ratings from Credit-Watch, where it placed them on March 30.

"These actions follow the recent filing by the issuer of a petition for a prepackaged Chapter II bankruptcy," a Standard & Poor's release says.

Because of the bankruptcy filing, Standard & Poor's doubts that the company will be able to make the annual interest payment due in June and expects that the notes will be exchanged for a direct equity interest in the building by the end of 1993.

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