Insolvent Olympia & York Developments Ltd. filed a revised reorganization plan in a Canadian court yesterday, company spokesman Frank Ternan said.
The plan, filed in Ontario Court [General Division], is essentially the same one the real estate company announced Nov. 20, Ternan said.
In its Nov. 20 announcement, Olympia & York said it would ask the court to push back the voting period scheduled for its previous plan, which was filed Oct. 27, Ternan said. The court subsequently granted a delay of the scheduled Nov. 25 to Nov. 30 vote on a reorganization plan by creditors until Jan. 11 to Jan. 15, 1993, enabling Olympia & York to file yesterday's plan, he said.
Ternan explained that certain creditors had said they would not support the first plan, but would back the one filed yesterday.
In a release issued last month, Gerald Greenwald, president of Olympia & York, said the "fundamental purpose" of the new plan would be to stabilize Olympia & York for five years.
"The revisions simplify the plan put forward on Oct. 27, appear to satisfy principal concerns of creditors and provide time to complete the reorganization of [U.S.] and other assets," the release says.
The revised plan would preserve creditors' unsecured and undersecured claims, which would mature in five years with interest accruing at the current rates.
The earlier plan, which has been scrapped, called for issuing bonds with the right to convert into 90% of the equity of Olympia & York.
The revised plan calls for the Reichmann family, which controls O&Y, to retain 100% of the company's shares, although creditors' substantial claims would stay in place.
In secondary trading yesterday, spreads on high-grade bonds kept pace with Treasuries, which finished stronger. High-yield bonds ended quiet and unchanged.
The Federal National Mortgage Association issued $250 million of 6.260% medium-term notes due 1997 at par. Noncallable for three years, the bonds were priced to yield 21 basis points over comparable Treasuries. Merrill Lynch & Co. managed the offering.
Global Marine issued $225 million of 12.75% senior secured notes due 1999 at par. The notes are callable after five years at 102 moving to par. Moody's Investors Service rates the offering B1, while Standard & Poor's Corp. rates it B-plus. Salomon Brothers lead managed the offering.
Florida Power & Light issued $150 million of first mortgage bonds due 2012. Non-refundable for five years, the bonds were priced at 98.327 to yield 8.044%. or 61 basis points over comparable Treasuries. Moody's rates the offering A2, while Standard & Poor's rates it A. A group led by Salomon Brothers won competitive bidding to underwrite the offering.
Inland Steel Industries Inc. issued $150 million of 12.75% senior unsecured notes due 2002 at par. Noncallable for five years, the notes were rated Ba3 by Standard & Poor's and B-plus by Moody's Investors Service. Goldman, Sachs & Co. lead managed the offering. Shawmut National Corp. issued $150 million of 8.625% subordinated notes due 1999. The noncallable notes were priced at 99.754 to yield 8.672%, or 225 basis points over comparable Treasuries. Moody's rates the offering Ba3, while Standard & Poor's rates it BB-minus. Morgan Stanley & Co. lead managed the offering.
Federal Farm Credit Banks issued $140 million of 5.840% medium-term notes due 1996 at par. The noncallable notes were priced to yield 20 basis points over blended three and five-year Treasury yields. Dean Witter Reynolds Inc. sole managed the offering.
Amphenol Corp. on Tuesday issued $95 million of 12.750% senior subordinated notes due 2002. Noncallable for five years, the notes are callable at 104.80 in 1997, 103.20 in 1998, and 101.60 in 1999 moving to par in 2000. Moody's rates the offering B2, while Standard & Poor's rates it B. Merrill Lynch & Co. lead managed the offering.
Glycomed Inc. issued $50 million of convertible subordinated debentures due 2003. The debentures are convertible into common stock at $14.06, a 25% conversion premium. Moody's rates the offering Caa. Montgomery Securities lead managed the offering.
Duff & Phelps Credit Rating Co. has downgraded International Business Machines Corp.'s senior notes and debentures to AA-minus from AA. The securities will stay on Duff & Phelps' Rating Watch-Unfavorable.
"The rating action reflects our concerns about the long-term outlook for IBM's key businesses," a Duff & Phelps release says.
Standard & Poor's has changed Quantum Chemical Corp.'s outlook to stable from negative. The rating agency also affirmed the company's B-plus senior unsecured debt and B-minus subordinated debt, a Standard & Poor's release says.
"The outlook revision reflects the company's ability to continue to weather the petrochemical industry's cyclical trough despite an onerous tax burden," the release says. "Near-term cash needs will be helped substantially by tax refunds and a business interruption insurance payment. Also, the pricing environment should experience gradual improvement over the next several years."