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To: gbh who wrote (4360)	5/15/1998 11:25:00 AM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

U.S. junk bond mkt sees over $3.0 bln in new debt Reuters Story - May 15, 1998 09:37 %US %USC %DBT %MUNI %ISU %EUB %US/CORP REGL GSTRF NCPX MCIC RECY NGL V%REUTER P%RTR NEW YORK, May 15 (Reuters) - The U.S. junk bond market is expecting more than $3.0 billion in new deals to price next week, including $400 million each from Regal Cinemas Inc. and Loewen Group International, sources said. Regal Cinemas is expected next week to sell $400 million in 10-year senior subordinated notes via Morgan Stanley Dean Witter, and Loewen Group, the international funeral home business, is slated for $400 million in five- and 10-year senior notes via Salomon Smith Barney, sources said. Meanwhile, of the $7.2 billion in junk bonds that had been expected to price this week, $3.0 billion was yet to come as of Friday morning. "Next week's total will probably be bigger than the $3.0 billion on the calendar because I expect some of the deals due Friday will be rolled over into next week," said Kingman Penniman, who heads KDP Investment Advisors, a high-yield research firm that caters to institutional investors. Among the deals expected as early as Friday is American International Telephone Inc.'s $150 million ($90 million to $95 million proceeds) in 10-year senior discount notes via Friedman, Billings, Ramsey & Co. Inc., sources said. Price talk is 12 percent to 12.50 percent with warrants for three percent of the company's equity, sources said. Globalstar Telecommunications Ltd is expected Friday to sell $250 million in seven-year senior notes via Bear Stearns, sources said. Price talk is 11.75 percent. "Their existing issues are trading at 11.375 percent," Penniman said. "A lot of investors already have that kind of paper, so the company has to price the new paper attractively to get people interested in it, which causes the secondary paper to go down." PRIMESTAR Inc. has postponed a debut offering of $400 million in high-yield bonds following a challenge by the U.S. Justice Department earlier this week, the direct broadcast satellite company said Friday morning. A spokesman for the company said no date has been set for a relaunch of the transaction. Earlier this week, the Justice Department moved to block PRIMESTAR's planned purchase of a key satellite orbital slot and satellite asset from News Corp. and MCI Communications Corp. for $1.1 billion. Recycling Industries Inc. has postponed due to market conditions its $250 million in B3/B-minus eight-year debt via Merrill Lynch, sources said. Price talk had been 11-1/8 percent to 11-3/8 percent, sources said. U.S. high-yield bond mutual funds received net cash inflows of $247.4 million in the week ended May 13, according to AMG Data Services. U.S. junk bond mutual funds saw net inflows of $249 million and net outflows of $109.2 million in the weeks ended May 6 and April 29, respectively, AMG reported. Turning to the high-grade market, NGC Corp. is expected Friday to sell $175 million in 20-year debt via Salomon Smith Barney, sources said. Price talk was 117 to 119 basis points over Treasuries, sources said.