MNC stock skids to new low

January 10, 1991|By Ross Hetrick | Ross Hetrick,Evening Sun Staff

Facing the repayment of half a billion dollars of debt next week, MNC Financial Inc. saw its stock drop to is lowest point yesterday, falling 50 cents to $1.87 1/2 a share.

In early afternoon trading today, the price was $2, up 1/8 .

Besides its looming debt problem, analysts also blamed the decline on the continuing fallout from the takeover of Bank of New England on Sunday by the federal government.

Along with its stock, MNC's 9.375 percent subordinated capital notes, due in 1997, dropped 8 points to 21.

MNC is the parent company of Maryland National Bank and American Security Bank in Washington.

On Monday, MNC is due to pay $375 million of loan from a syndicate of banks headed by Morgan Guaranty Trust Co. of New York. The next day the bank holding company has to repay $271 million in notes.

The recently completed sale of the MNC subsidiary Landmark Financial Services Inc. to Commercial Credit Co. for about $369 million will cover only one of the debts.

Analysts expect that MNC will use the money to pay the notes and will try to renegotiate the line of credit with Morgan.

Meanwhile, there has been reported movement on MNC's efforts to sell its credit card division, MBNA America. This could generate as much as $1 billion and solve many of the bank's problems. Besides looking for a buyer, MNC has filed papers with the Securities and Exchange Commission for a possible public offering of the operation.

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