More than $1 billion of high-yield paper is expected to drench the market this week, high-yield sources say.

New junk on deck includes Transco Energy Co.'s $300 million of notes due 1999. First Boston Corp. will lead manage the offering, which is rated B-1 by Moody's Investors Service and B by Standard & Poor's Corp. Price talk is 10-3/4% to 11%. The offering is expected to be priced this evening.

Rexnord's $150 million of senior notes due 2002 through Citicorp Securities Markets Inc. should also arrive this evening. The issue is rated Ba3 by Moody's and B-plus by Standard & Poor's. Price talk on that offering is 10-1/2% to 10-3/4%. The offering comes with a 15% over-allotment clause.

Silgan Corp. plans to offer $135 million of senior subordinated notes due 2002 through Morgan Stanley & Co. Moody's rates the offering B3, while Standard & Poor's rates it B-minus.

Also expected this week is Silgan Holdings Inc.'s $268 million face amount of senior discount debentures due 2002 through Morgan Stanley. Moody's rates the debentures B-3, while Standard & Poor's rates them B-minus. Silgan is also planning a $75 million private placement of senior secured notes due 1997.

Life Partners Group is expected this week to offer $125 million of senior subordinated notes due 2002 through First Boston Corp. The notes are rated B-1 by Moody's and B-plus by Standard & Poor's. Price talk is expected today.

Price talk on Mediq/PRN Life Support Services Inc.'s $100 million of senior secured notes due 1999 through Dillon, Read & Co. is also expected, with pricing expected late this week.

In the investment-grade arena this week, Korea Electric Power is expected to offer $300 million of seven-to-10-year Yankee bonds through Lehman Brothers, one source who follows new issues said.

Another high-grade issuer, the World Bank, is rumored to be considering moving up the date for its next global offering to July from September.

"We've done one every September for the last three years," a World Bank official said. However, he would not confirm or deny whether a July offering was possible. The bank's global bond deals usually range from $1 billion to $2 billion, he said.

Also, Matsushita Electric Industrial Co. Ltd., parent of Matsushita Electric Corp. of America, is expected to price an offering next month from its recently filed $1 billion shelf registration. Aki Takei, an assistant manager in the wholly-owned subsidiary's investor relations department, said Matsushita is awaiting Securities and Exchange Commission approval for the issue. The offering's size and maturity remain undetermined, he said.

In secondary trading yesterday, high-yield bonds opened lower but finished unchanged in thin trading as new deals stole the spotlight. High-grade corporate bond prices slipped 1/8 point in quiet trading as the market digested last week's heavy new-issue plate.

New Issues

AMR issued $200 million of 6.250% notes due 1995. The noncallable notes were priced at 99.839 to yield 6.31% or 83 basis points over comparable Treasuries. Moody's rates the offering Baal, while Standard & Poor's rates it BBB. Lehman Brothers lead managed the offering.

Mission Energy issued a two-part Rule 144A offering totaling $200 million. The first tranche consisted of $100 million of 7.75% notes due 1999 at par. The noncallable notes were priced to yield 93 basis points over comparable Treasuries. The second tranche consisted of $100 million of 8.125% notes due 2002 at par. The notes were priced to yield 100 basis points over comparable Treasuries. Moody's rates the offering Baa2, while Standard & Poor's rates it A-minus. Salomon Brothers Inc. lead managed the offering.

Society Corp. issued $200 million of 8.125% subordinated notes due 2002 at par. The noncallable notes were priced to yield 89.5 basis points over comparable Treasuries. Moody's rates the offering Baal, while Standard & Poor's rates it BBB-plus. Goldman, Sachs & Co. lead managed the offering.

Rating news

Despite better financial results in recent quarters, U.S. bank ratings are unlikely to be upgraded in the near future, according to a Standard & Poor's special report.

A study by Standard & Poor's on money center and regional banks adds that "the leveling off in asset quality problems, renewed access to capital markets, an emphasis on capital building and efficiency, and industry consolidation boded well for U.S. banks' long-term creditworthiness and contributed to the stanching of the downward slide of their ratings."

But the report says continued growth in nonperforming loans on real estate and to highly leveraged companies, plus a high level of charge-offs for consumer loans, would likely dim upgrade prospects for most large U.S. banks.

The agency said asset quality remains poor at a hefty portion of rated banks, and it will be several years before nonperforming loans subside to normal levels and reserves are built to absorb embedded losses.

In other rating actions yesterday, the B-minus rating on Ralphs Grocery Co.'s $400 million of 14% senior subordinated debentures remains on Standard & Poor's CreditWatch, where the agency placed it May 11 for a possible upgrade pending completion of the company's recapitalization plan.

Ralphs' proposed $300 million of senior subordinated notes due 2002 will receive a B rating from Standard & Poor's once the recapitalization is complete, the agency said.

The Compton, Calif.-based supermarket operator will use proceeds from the debt and equity offerings to retire much of its 14% debentures. The remainder of the issue will be defeased, Standard & Poor's said.

If the recapitalization goes as planned, Standard & Poor's will raise the subordinated debt rating on the issue to be defeased to B. Ralphs' implied senior rating, now at B-plus, will be upgraded to BB-minus, the release says.

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