A $400 million US West Communications deal and a $350 million Bank of Boston offering are rumored to arrive soon, market sources said yesterday.
US West Communications is expected to offer $150 million of a 12-year tranche and $250 million of a 50-year piece, which would be non-callable for 20 years. The offering is expected to be done through lead manager Merrill Lynch & Co. Some sources said it could arrive as soon as today or tomorrow, though some disagreement existed concerning timing.
Bank of Boston is expected to sell $350 million of 12-year subordinated debt. also through Merrill Lynch.
A Merrill Lynch spokeswoman declined comment on either deal. Blair Johnson, a US West spokesman also reserved comment, citing company policy.
Aside from those two offerings, high-grade underwriting sources saw little else on the horizon yesterday, and one syndicate official predicts issuance will be "a little on the slow side" this week.
A second syndicate official said new-issue volume would hinge on the two key inflation numbers due out this: Tuesday's producer price index and Wednesday's consumer price index.
"It depends on how the numbers come out," the source said. Should the numbers be weaker than expected and spark Treasury market gains, issuers who missed the last rally may come in. the source said.
In other news, Union Pacific Corp. yesterday said it will redeem on Dec. 15 all $250 million outstanding of its 7 7/8% notes due 1996 at par plus accrued interest to the redemption date. Citibank NA is the paying agent.
In secondary trading yesterday, high-yield bonds were extremely quiet and unchanged to 1/8 point higher in spots. Spreads on high-grade issues were unchanged.
New Issues
ITT Financial Corp. issued a two-part floating-rate note offering totaling $225 million. The first tranche consisted of $125 million of notes due Nov. 17, 1994, and priced initially at par. The notes float monthly at the commercial paper rate and pay monthly. The second consisted of $100 million of notes due Jan. 17, 1995, and priced initially at par. The notes float monthly at the commercial paper rate plus 10 basis points. They also pay monthly. Goldman, Sachs & Co. was sole manager.
Rating News
Moody's Investors Service has raised Household International Inc.'s ratings and those of its rated and guaranteed subsidiaries including Household Finance Corp.
Approximately $6.6 billion of securities are affected.
"The upgrades were prompted by stronger capital and reserves and by Moody's expectation that both capital and asset quality will continue to show signs of improvement," a Moody's release says.
The rating agency said that Household Finance Corp.'s "large liquidating commercial lines portfolio may continue to generate accounting losses, leading to fluctuations in earnings."
Moody's actions affect the following ratings:
* Household International Inc.'s senior debt was raised to A3 from Baa1: Its senior shelf rating to (P)A3 from (P)Baa1; and its preferred stock rating to "baal" from "baa2."
* Household Finance Corp.'s senior debt was raised to A2 from A3; its senior shelf rating to (P)A2 from (P)A3; its subordinated debt rating to A3 from Baa 1; its subordinated shelf rating to (P)A3 from (P)Baa1; its preferred stock shelf registration to (P)"a3" from (P) "baal"; and its commercial paper rating to Prime-1 from Prime-2.
* Household Global Funding Inc.'s preferred stock was raised to "baa1" from "baa2."
* Household Financial Corp. Ltd.'s senior debt guaranteed by Household International was raised to A3 from Baal. Its short-term debt guaranteed by Household International was confirmed at Prime-2.
* Household Financial Services Ltd.'s commercial paper guaranteed by Household Finance Corp. was raised to Prime-1 from Prime-2.
* Household Bank f.s.b.'s rating of the bank for long-term deposits was raised to A2 from A3; its subordinated shelf was raised to (P)A3 from (P)Baa1; and the bank's short-term deposits rating was raised to Prime-1 from Prime-2.
