Goldman Sachs, MidAmerican, Kinder Morgan among new issuers on another high-volume day

By Andrea Heisinger

Omaha, Aug. 23 - More than $6 billion in new investment-grade issues priced Thursday, including deals from Goldman Sachs & Co., MidAmerican Energy Holdings Co., Kinder Morgan Energy Partners LP, Consolidated Edison Co. of New York Inc. and Lehman Brothers Holdings Inc.

Goldman Sachs' $2.5 billion issue of 6.25% 10-year notes priced at a spread of Treasuries plus 167 basis points. They had a price of 99.823 and yield of 6.274%.

MidAmerican Energy had a $1 billion issue, upsized from $750 million, of 6.5% 30-year notes priced at a spread of Treasuries plus 164 bps. The price was 99.147 with a yield of 6.565%.

A $525 million issue of 6.3% 30-year debentures from Consolidated Edison was also upsized, in this case from $400 million. The bonds priced at a spread of Treasuries plus 140 bps, with a yield of 6.342% and price of 99.443.

Lehman Brothers priced a $500 million add to its 15-year Libor plus 170 bps floating rate put bonds at par. The addition took the total size to $750 million. The bank priced the original $250 million on Tuesday.

And Kinder Morgan Energy Partners priced its $500 million in five-year 5.85% notes at a spread of Treasuries plus 150 bps. This issue was also reportedly upsized from $350 million.

"There seemed to be a lot of deals getting done today," one trader said.

It followed Wednesday's issues of about $8 billion.

The investment banks are throwing their hats in the ring, putting out new issues that have not all been short-term.

Acting before spreads widen

"The treasurers at these places believe the spreads are going to go wider, so they're getting in now," one market source said to explain it.

Goldman Sachs, Morgan Stanley, Deutsche Bank and Lehman Brothers have all had new issues this week, and the source said they would also lump in the $1.5 billion from American Express with them.

There won't be many deals pricing in the last session of the week, one source said, estimating there would be one or two.

The month of August has been good for investment-grade, the source said, with a large volume of new issues recently making up for a slow start.

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