Stock market weakness was expected to thin last night's scheduled pricing of Owens-Illinois Inc.'s initial public offering to $11 a share, a drop from the $13 to $16 the company had hoped for, high-yield analysts said.

"They had to start the planning before the market softened, and there is a factor of luck that does not always move with a new issuer," Jim Potesky, a rating officer with Standard & Poor's Corp., said yesterday.

The equity offering precedes a much anticipated $1 billion high-yield debenture offering by Owens-Illinois that analysts say could come next week. Both are part of a debt recapitalization plan the company announced in mid-October.

If sold at $11 a share, the initial public offering -- combined with about $200 million of equity expected to be sold to employee pension funds and some additional shares expected to be purchased by a 401(K) plan -- will bring in approximately $900 million for the company. Owens-Illinois will use that $900 million to reduce debt, Mr. Potesky said. That figure does not account for a possible increase in the initial public offering, he said.

Mr. Potesky added that, despite the lower-than-expected share price, it appears likely that Standard & Poor's will still upgrade Owens-Illinois senior debt to BB from B-plus. The "$900 million of debt reduction certainly benefits credit quality materially," he said.

The agency on Nov. 18, announced it would raise the company's senior debt rating if the initial public offering succeeded.

In other high-yield news, News America Holdings is expected to price its $300 million 10-year offering tomorrow. Price talk is 11 1/2% to 11 3/4%, a high-yield source said.

Yesterday's Activity

In secondary-market trading yesterday, high-yield bonds gained about 1/4 point over all. High-grades gained about 1/8 point in the long end, with yesterday's new-issue market welcoming several offerings.

GPA Delaware Inc. issued $500 million of 8.750% guaranteed notes due 1998. The noncallable notes were priced at 99.635, to yield 8.821% or 212.5 basis points over comparable Treasuries. Moody's Investors Service rates the offering Baal, white Standard & Poor's rates it A-minus. Merrill Lynch & Co. was lead manager for the offering.

GTE North issued $250 million of 8.5% first mortgage bonds due 2031. Noncallable for 10 years, the bonds were priced at 98.82, to yield 8.605% or 83 basis points over comparable Treasuries. Moody's rates the bonds Aa3, while Standard & Poor's rates them AA. First Boston Corp. won competitive bidding to lead manage the offering.

Waste Management issued $250 million of 6.250% notes due 1995. The noncallable notes were priced at 99.825%, to yield 6.30% or 50 basis points over interpolated four-year Treasuries. Moody's rates the offering A1, while Standard rates it AA. Kidder, Peabody & Co. lead managed the offering.

Southern California Edison Capital Co. issued $200 million of 7.375% senior unsecured notes due 2003. Noncallable for five years, the notes were priced at 95.688, to yield 7.939% or 75 basis points over comparable Treasuries. Moody's rates the offering Aa3, while Standard & Poor's rates it AA-minus. Lehman Brothers won the competitive bidding to underwrite the offering.

African Development Bank issued $200 million of 7.75% subordinated notes due 2001. The noncallable notes were priced at 99.31, to yield 7.851% or 65 basis points over 10-year Treasuries. Moody's rates the offering Aa1, while Standard & Poor's rates it AA. Goldman, Sachs & Co. was lead manager on the offering.

Sun Co. issued $150 million of 7.950% notes due 2001. The non-callable notes were period at 99.863, to yield 7.97% or 80 basis pointes over comparable Treasuries. Moody's rates the offering A2, while Standard & Poor's rates it A. Lehman lead managed the offering.

International Lease Finance issued $100 million of 6.875% notes due 1995. The noncallable notes were priced at 99.931, to yield 6.895% or 110 basis points over interpolated three-to-five-year Treasuries. Moody's rates the offering A2, while Standard & Poor's rate it A-plus. Morgan Stanley & Co. won the right to underwrite the offering.

Federal Farm Credit Banks issued $50 million of 7.010% medium-term notes at par. Noncallable for three years, the notes were priced to yield 32 basis points over comparable Treasuries. Lehman managed the offering.

Central Maine Power issued $50 million of 7.375% guaranteed and refunding first mortgage bonds due 1999. The noncallable bonds were priced at 99.643, to yield 7.44% or 75 basis points over comparable Treasuries. Moody's rates the offering Baal, while Standard & Poor's rates it BBB-plus. Kidder, Peabody & Co. sole managed the offering.

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