NationsBank Corp. on Thursday issued $300 million of senior debt, using its own securities subsidiary to underwrite the issue.

It was the first time NationsBanc Capital Markets Inc. has been lead manager of a corporate bond issue since it received Federal Reserve Board approval to enter the business in July.

"We've put a lot of time and resources into building these underwriting capabilities to serve customer needs, so it makes sense for us to utilize them ourselves," said a bank spokeswoman. "That's not to say we will use NationsBanc Capital markets every time in the future."

Co-Managed First USA Issue

NationsBank's first use of its new underwriting powers came in July when it was co-manager for a $150 million debt issue by First USA Bank.

NationsBank's five-year senior debt issue was priced to yield 5.18%, or 50 basis points over the five-year Treasury note.

Bear, Stearns & Co., Lehman Brothers, and Merrill Lynch & Co. were co-managers of the deal.

For U.S. West Purchase

Proceeds will go toward NationsBank's pending $2.4 billion purchase of assets of U.S. West Financial Services Inc.

That deal is expected to be completed in the fourth quarter.

One capital markets source estimated that NationBank will this yearissue at least $300 million more in senior underwritten debt and over $500 million in the medium-term note market in preparation for pending acquisitions.

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