NationsBank leads surge of new deals as issuers feast on low interest rates.

More than $3.7 billion of new corporate debt was priced yesterday as issuers rushed to take advantage of the lowest long-term interest rates in 16 years.

Yesterday's biggest offering was NationsBank Corp.'s two-part offering totaling $950 million.

The deal consisted of $400 million of 4 3/4% senior notes due 1996. The noncallable notes were priced at 99 3/4% to yield 4.842% or 46 basis points over three-year Treasuries. Moody's rates the notes A3, while Standard & Poor's rates them A.

Part two consisted of $550 million of 6.50% subordinated notes due 2003 at par. The noncallable notes were priced to yield 80 basis points more than comparable Treasuries. Moody's rates the notes Baa1, while Standard & Poor's rates them A-minus. Merrill Lynch & Co. served as lead manager on the offering.

Each tranche was increased by $50 million because of strong demand, a source familiar with the offering said.

A buy-side source said NationsBank's three-year portion went quickly, but the bank had to add more yield to the 10-year piece.

"Once they did, the orders poured in," the source said.

From his standpoint, Philips Electronics N.V.'s $500 million issue offered the most value for investors of all of yesterday's offerings, the buy-side source said.

In secondary trading, spreads on high-grade issues ended unchanged. High-yield bonds were also unchanged.

New issues

Philadelphia Electric Co. issued $500 million of first and refunding mortgage bonds in three tranches yesterday.

The first tranche consisted of $225 million of 5 3/8% bonds due 1998. The noncallable bonds were priced at 99.72 to yield 5.44% or 40 basis points more than comparable Tresuries. Lehman Brothers won competitive bidding to act as sole manager of the offering.

The second tranche consisted of $75 million in 6 3/8% bonds due 2005. Noncallabe for five years, the bonds were priced at 99.725 to yield 6.408%, or 72 basis points more than comparable Tresuries. Morgan, Stanley & Co. won competitive bidding to act as sole manager of the offering.

Part three consisted of $200 million 7 1/8% bonds due 2023. Noncallable for five years, the bonds were priced at 98, 425 to yield 7.254%, or 98 basis points more than Treasuries. Citicorp Securities won competitive bidding to act as sole manager.

All three tranches were rated A-minus by Fitch Investors Service, Baa1 by Moody's Investors Service, and BBB-plus by Standard & Poor's.

Philips Electronics $500 million offering came in two parts. The first tranche consisted of $250 million of 6.75% notes due 2003. The noncallable notes were priced at 99.725 to yield 6.788% or 110 basis points more than 10-year Treasuries. Part two consisted of $250 million of 7 1/4% debentures due 2013. The noncallable debentures were priced at 99.154 to yield 7.331% or 105 basis points more than 30-year Treasuries. Moody's rates the offering Baa1, while Standard & Poor's rates it BBB. Goldman, Sachs & Co. served as lead manager of the offering.

TransTexas Gas Corp. issued $500 million of 10.50% senior secured notes due 2000 at par. The notes are callable after five years at 103. The company can call $100 million of the offering between 1993 and 1995 if it completes an initial pubic offering. A 25% per year sinking fund begins in 1997. Jefferies & Co. managed the offering, which was rated B1 by Moody's and BB-minus by Standard & Poor's.

Westvaco issued $150 million of 7% debentures due 2023. Noncallable for 10 years, the debentures were priced at 99.05 to yield 7.077% or 80 basis points more than comparable Treasures. Merrill Lynch & Co. served as lead manager of the offering. Moody's rates the offering A1, while Standards & Poor's rates it A.

New York Telephone Co. issued $200 million 5 7/8% notes due 2003. The noncallable notes were priced at 98.655 to yield 6.056% or 36.5 basis points more than comparable Treasuries. Citicorp Securities Inc. won competitive bidding to act as sole manage of the offering. Fitch Investors Service rates the offering A-plus, Moody's rates it A-2, and Standard & Poor's Corp. rates it A.

New York Telephone issued $100 million of 5.25% debentures due 1998. The noncallable debentures were priced at 99.531 to yield 5.356 or 30 basis points more than comparable Treasuries. Moody's rates the offering A2, while Standard & Poor's rates it A. Morgan Stanley & Co. won competitive bidding to underwrite the offering.

Masco Corp. issued $200 million of 7 1/8% debentures due 2013. The noncallable debentures were priced at 99.375 to yield 7.184% or 87 basis points more than 30-year Treasuries. Moody's rates the offering Baa1, while Standard & Poor's rates it BBB-plus. Salomon Brothers Inc. served as lead manager of the offering.

The Province of New Brunswick issued $200 million of 6 3/4% debentures due 2013. The noncallable debentures were price at 99.389 to yield 6.806 or 50 basis points more than comparable Tresuries. Moody's rates the offering A-1, while Standard & Poor's rates it AA-minus. Salomon Brothers acted as lead manager of the offering.

Atlantic City Electric Co. issued a two-part $150 million first mortgage bond offering through competitive bidding yesterday.

The first tranche consisted of $75 million of 7% bonds due 2028. Non-refundable for 10 years, the bonds were priced at 98.82 to yield 7.091% or 80 basis points more than 30-year Treasuries. Bear, Stearns & Co. won the competitive bidding to underwrite the offering.

Part two consisted of $75 million of 6 5/8% bonds due 2013. The non bonds were priced at 99.654 to yield 6.656% or 37 basis points more than comparable Treasuries. Goldman, Sachs & Co. won competitive bidding to underwrite the offering. Moody's rates the offering A2, while Standard & Poor's rates it A.

Toronto Dominion Bank's New York Branch issued $150 million of 6.50% subordinated notes due 2008. The noncallable notes were priced at 99.72 to yield 6.53% or 82 basis points more than 10-year Treasuries. Kidder, Peabody & Co. managed the offering. Moody's rates the offering Aa3, while Standard & Poor's rates it AA-minus.

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