Corporate Bond Alert: Merrill Lynch, Monsanto Plan Jumbo Sales
Bloomberg News
November 17, 1998, 9:31 a.m. ET
New York, Nov. 17 (Bloomberg) -- Following is a description
of corporate and other bond sales expected in the U.S. market in
coming weeks.
Investment Grade
MERRILL LYNCH & CO. plans to sell $1 billion of global bonds
in two pieces, according to people familiar with the sale. The
New York-based securities firm is expected to sell 20-year bonds
at a yield 150 to 155 basis points more than 6.125 percent
Treasuries due in November 2027. It's also expected to sell six-
year notes at 125 to 130 basis points more than the 7.875 percent
Treasuries due in November 2004. The amount of each maturity
hasn't yet been decided. Merrill Lynch's senior debt is rated
''Aa3'' by Moody's and ''AA-'' by S&P. (Updated Nov. 17. Company
news: MER US CN.)
MONSANTO CO., one of the world's leading agricultural
biotechnology companies, said it plans to sell $2.5 billion of
senior unsecured notes to help fund its recent seed company
acquisitions. Salomon Smith Barney and Goldman, Sachs & Co. are
expected to arrange the sale, said people familiar with the
transaction. Maturities have not been set. The company, whose
senior debt is rated ''A1'' by Moody's Investors Service,
outlined its borrowing and cost-cutting plans last week. (Updated
Nov. 17. Company news: MTC US CN.)
UNITED HEALTHCARE CORP. plans to sell $500 million of notes
in two parts, according to people familiar with the sale. The
maturities and size of each issue hasn't been decided. The
company's senior debt shelf registration was assigned a
preliminary ''A3'' by Moody's. Goldman, Sachs & Co. is expected
to arrange the sale. (Updated Nov. 17. Company news: UNH US
CN.)
K N ENERGY INC., a natural gas producer and pipeline
company, plans to sell $375 million of three-year notes this week
to reduce short-term borrowings, according to a filing with the
Securities and Exchange Commission. The notes are rated ''BBB-''
by S&P, its lowest investment-grade rating. Moody's, which
changed its outlook on the company's debt to negative from stable
last week, rates the notes ''Baa2.'' Morgan Stanley Dean Witter
and Merrill Lynch & Co. will lead securities firms managing the
sale. (Updated Nov. 16. Company news: KNE US CN.)
BANK OF HAWAII plans to sell $150 million 10-year
subordinated bank notes in coming days, according to people
familiar with the sale. The bank's debt is rated ''A3' by Moody's
and ''BBB '' by S&P. Credit Suisse First Boston is arranging the
sale. (Updated Nov. 17. Company news: 3741z US CN.)
HRPT PROPERTIES TRUST plans to sell $75 million of monthly
income senior notes due in 2013, according to Merrill Lynch & Co.
which is leading managers arranging the sale. The notes are
expected to yield about 8.15 percent and can be redeemed by the
company in five years. The notes are rated ''Baa2'' by Moody's
and ''BBB'' by S&P. (Updated Nov. 17. Company news: HRP US
CN.)
Junk Bonds
METROMEDIA FIBER NETWORK INC., which has a 54-mile fiber-
system in New York, plans to sell privately at least $350 million
of 10-year junk notes this week, in its first debt sale. The
White Plains, New York-based company may increase the sale to
$500 million or more, investors said. The notes haven't yet been
rated. Salomon Smith Barney is arranging the sale. (Updated Nov.
17. Company news: MFNX US CN.)
TRUE TEMPER SPORTS INC., a maker of golf club shafts,
plans to sell $100 million of 10-year senior subordinated notes
in coming days, according to people familiar with the sale. The
notes are rated ''B3'' by Moody's and ''B-'' by S&P. Donaldson,
Lufkin & Jenrette is arranging the sale. (Updated Nov. 17.
Company news: 13089Z US CN.)
CIRCUS CIRCUS ENTERPRISES INC. plans to sell $250 million of
seven-year notes in coming days, according to people familiar
with the sale. The sale will probably be held this week,
following investor presentations by the hotel and casino
operator. The company's outstanding debt is rated ''BBB-'' by
S&P. The new notes haven't yet been rated. Merrill Lynch & Co.
and NationsBanc Montgomery Securities LLC. are arranging the
sale. (Updated Nov. 17. Company news: CIR US CN.)
--Lee Theodoros and Kathleen Spillane in the New York newsroom |
