A $400 million James River Corp. issue and some utility deals will join Korea Electric Power Co.'s $1.35 billion offering this week.
"So there are some issues in the market." one syndicate official said. Korea Electric Power is expected to launch $1.3 5 billion of 10-year global notes through Lehman Brothers tomorrow for pricing on Thursday.
Traders yesterday were expecting the notes to yield approximately 85 to 90 basis points more than comparable Treasuries, but no official price talk was available.
Merrill Lynch & Co.; Goldman, Sachs & Co.; and Salomon Brothers Inc. were also said to be underwriters.
James River is expected this week to offer a two-part deal totaling $400 million. The offering is expected to consist of $200 million of a 10-year tranche, and $200 million of a 30-year tranche.
A financial analyst at the company declined to comment on the anticipated offering.
Florida Power & Light Co. is expected sometime this week to offer $135 million of debt due 2026.
Today, Alabama Power Co. is expected to offer $100 million of 30-year first mortgage bonds through competitive bidding, market sources said. Alabama is also expected to offer a $50 million preferred stock deal today.
Other names rumored for this week include New York Telephone Co. and Household Finance Corp., one syndicate source said.
"It looks like the corporate calendar is picking up a touch," said a portfolio manager at one firm.
In secondary trading. spreads on high-grade issues were unchanged yesterday in quiet trading. Junk ended generally higher, though some issues, notably Revlon, showed weakness. Revlon issues lost 1 1/2 to two points on unfavorable earnings news, one high-yield trader said.
Bank of Boston reportedly issued $350 million of 6.625% subordinated notes due 2005. The noncallable notes were priced at 99.63 to yield 6.67% or 100 basis points more than comparable Treasuries. Moody's Investors Service rates the offering Baa2, while Standard & Poor's Corp. rates it BBB. Merrill Lynch was lead manager.
Federal Home Loan Banks reportedly issued $250 million of 3.58% notes due 1994 at par. The noncallable notes were priced to yield six basis points more than the one-year Treasury bill. Merrill Lynch managed the offering.
Federal Home Loan Banks reportedly issued $200 million of 4.08% notes due 1995 at par. The notes were priced flat to the Treasury's 3.87% debt of September 1995. Merrill Lynch managed the offering.
Standard & Poor's has placed Walt Disney Co.'s AA-minus senior debt and A-1-plus commercial paper ratings on CreditWatch for a possible downgrade.
The action affects $1.2 billion of long-term debt.
"The action is based on the larger-than-anticipated loss at 49%-owned EuroDisneyland (EDL), the potential for a more extended period of negative cash flow, and possible pressures on Disney to provide increased financial support to EDL in debt restructuring negotiations with EDL's bank group," a Standard & Poor's release says.
Standard & Poor's has upgraded Cablevision Industries Corp.'s senior unsecured debt to BB-minus from B-plus. The implied senior secured debt rating is BB. About $500 million of debt is rated.
"The ratings upgrade reflects Cablevision Industries' improved key credit measures, good system profile, and expectations for ongoing moderation in the firm's debt leverage," a Standard & Poor's release says.