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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Yang who wrote (2264)	3/27/1998 3:45:00 PM
From: bob zagorin	Read Replies (2) \| Respond to of 5650

reference to PSIX bond offering.. US CORP BONDS - Trade picks up as end of qtr fades NEW YORK, March 27 (Reuters) - U.S. corporate high-grade debt tightened a touch as buyers came back to market after wrapping up business for the first quarter. "Now that end of quarter is basically over we're seeing somewhat of a feeding frenzy going on ... spreads have tightened about one to two basis points as a result," said one high-grade trader of bank and finance paper. Defense and rail sector paper also tightened a touch, traders said. Raytheon Co's <RTNa.N> bonds due 2010 were quoted two basis points tighter at 95 bid, 92 offer, traders said. The defense manufacturer's new 6.30 percent debt issue due 2005 tightened to trade at a spread of 66 bid, 63 offer, traders said. Among banking issues, First Union's Corp's <FTU.N> new 10-year issue was quoted two basis points tighter when freed to trade, market players said. In the high-yield sector, some trading activity was seen in the secondary market early on, but later faded, as players continued to eye the wide array of new junk offerings on tap to come to market. Recent deals have fared very well, tightening soon after hitting the secondary market. While Friday's new issue action was expected to be light, with only Paragon Corp and Mediacom LLC/Capital Corp on the calendar, next week promises to be a very busy one, traders said. At least 19 new U.S. high-yield corporate bond deals totaling over $3.5 billion are expected to hit the market next week, sources said. Meanwhile, Paragon is on tap to sell $115 million in 10-year debt. Price talk was seen between 9.375-9.625 percent. In addition, Mediacom is also expected to sell $150 million in 10-year senior notes, sources said. Next week's offerings include a $400 million 10-year debt offering from General Chemical Group <GCG.N>. The issue is rated B2/B-plus and will be underwritten by Salomon Smith Barney, sources said. CHS Electronics <CHSE.O> is expected next week to sell $200 million in seven-year notes via SBC Warburg Dillon Read. Also, PSINet <PSIX.O>, a Virginia-based global Internet access company, will sell $300 million in senior notes due 2005 via Donaldson Lufkin & Jenrette, sources said. Another $150 million in 10-year senior notes is expected to come from Interface Inc <IFSIA.O>. The issue which is rated Ba1/BB-plus will be underwritten via Salomon Smith Barney, sources said. Price talk is seen between 175 to 190 basis points over Treasuries, they said. Separately, AMG Data Services reported on Friday that high-yield bond mutual funds received net cash inflows of $99.4 million for the week ended March 25. Cash inflows totaled $851.6 million in the week ended March 18. Among recent new issues, Premier Park zeros were quoted at 63-5/8 bid, 64 offer, traders said. The firm's 9-1/4 debt was trading at 102 bid, 102-1/2 offer. Six Flags 8-7/8 debt was quoted at 101-3/4 bid, 102-1/4 offer, traders said. In the government market, the benchmark 30-year issue was quoted up 6/32 at 102-9/32 to yield 5.96 percent. 14:05 03-27-98