Results of Fed Tightening
* Dow registered its largest weekly gain ever, climbing 589 points
* The partying on Wall Street started early last week
* S&P was up 5.8%
* Nasdaq jumped up 7%
* Fixed income investors continue to have interest rate concerns
* High yield was particularly slow last week
HIGH YIELD
* $500 million in high yield expected to price Year to Date
* High yield had another quarter of increased new issuance volume
* Year to date offerings of $65.7 billion
* 2Q 1999, $34 billion of funds were raised, up from $31 billion in the first quarter.
* Compared to last year, new issuance volume is down 38%.
*
June has been the slowest month of the year with only $7.7 billion raised
STENA AB
Affirming Chase’s marketing mantra that “the right relationship is everything”, Chase has completed a $225 million five year private placement at 6.75% for Stena AB. The interest rate appears low because notes are secured by the company’s new drilling rig Stena Tay and the unit’s five year contract with a subsidiary of Shell. Proceeds will be used to pay down the company’s revolving credit facility. Chase recently closed a $150 million facility for Stena Sphere tanker owner Concordia Maritime. The facility was priced at 139 basis points over Libor and proceeds were used for the newbuilding V-Maxs as well as to refinance Concordia’s HBL ships formally owned by DK Lugwig.
This is only an excerpt of Freshly Minted – July 8, 1999
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