Bank of New England Corp is offering200 mln dlrs of subordinated capital notes due 1999 yielding
8.86 pct, said lead manager Morgan Stanley and Co Inc.
    The notes have an 8-3/4 pct coupon and were priced at 99.20
to yield 125 basis points more than comparable Treasury
securities.
    Non-redeemable for life, the issue is rated A-3 by Moody's
Investors and A by Standard and Poor's. Keefe Bruyette, Goldman
Sachs and Merrill Lynch co-managed the deal.
    Bank of New England said the notes will count as primary
capital of the corporation.
 Reuter
