For you numbers guys..............................
The story is at the bottom.
Does anyone know if 13 to 13 1/4 is a good rate for this transaction?
Reuters Story - May 08, 1997 10:18
NEW YORK, May 8 (Reuter) - Billions of dollars of railroad
and U.S. government securities kept corporate bond issuers
suppressed on Thursday but for a $250 million seven-year issue
from Lehman Brothers Holdings Inc , dealers said.
High-yield bond issues were more insulated from Treasury
volatility, however, and at least two issues will price.
Despite the lull in high-grade issuance, syndicate
officials said the market appears to have some equilibrium as
investors were themselves largely sidelined. But the Lehman
issue was likely to grab sufficient demand at its current price
talk of 78 to 80 basis points over the curve.
Distribution of the $29 billion three- and ten-year notes,
sold in auctions with lackluster to poor demand, occupied
taxable fixed-income players, according to several syndicate
officials. That is also not to forget a possible Federal
Reserve rate hike this month, they added.
"There's no reason to believe we'll get anything more than
we've seen for the week," one capital market official said.
"Dealers have been a major driver in the new issue market and
they're busy putting away Treasuries."
Norfolk Southern Corp's upcoming $3.0 billion
multi-tranche offering also capped activity, some said.
Turning to junk bond offerings, fund managers noted pricing
power has been slipping away from them to the sell side
following two weeks of marked improvement. Still, one manager
said buyers are more selective than not.
"The new issue market is mixed right now," said one fund
manager. "There have been both credit and pricing reasons to
stay away from deals, but for the most part we've seen strong
credits coming to our doorstep."
Mail order food products company Colorado Prime Corp priced
on the wide side of price talk on Thursday, reflecting
selectivity, according to another manager.
In the new issue on Thursday, Cityscape Financial Corp is
expected to price $300 million 144A seven-year B1/single-B
rated senior notes via CIBC Wood Gundy Securities. Price talk
on the issue is around 11-1/2 percent.
Also, GST Telecom's GST Equipment Funding Inc may price its
$230 million 144A 10-year senior secured notes at 13.00 percent
to 13-1/4 percent on Thursday through a Morgan Stanley & Co
syndicate. The issue has a three-year prefunded structure,
sources said. |
