Primary calendar expected to pick up amid renewed activity; BioMed slips in active trading

By Stephanie N. Rotondo

Phoenix, Feb. 13 - The primary preferred stock market was faring well on Wednesday, though no new issues were announced.

"We're still seeing lots of filings," a trader remarked, "so we could see an active calendar."

Cullen/Frost Bankers Inc.'s new $150 million of 5.375% series A noncumulative perpetual preferreds were quoted at $24.72 bid, $24.76 offered at midday.

"It probably should move up," a trader said. "It's not a bad deal, but it's small."

The deal priced Tuesday. A market source said that he was "pretty sure" the issue had freed from the syndicate.

Meanwhile, PartnerRe Ltd.'s $250 million of 5.875% series F noncumulative redeemable preferreds were continuing to trade around par.

The issue priced Monday and freed up on Tuesday.

In other recent deals, Armour Residential REIT Inc.'s $135 million issue of 7.875% series B cumulative redeemable preferreds - a deal that priced Feb. 8 - listed on the New York Stock Exchange under the ticker symbol "ARRPB." Saul Centers Inc.'s $125 million of 6.875% series C cumulative redeemable preferreds also listed, under the ticker "BFSPC."

Saul Centers priced Jan. 30.

The Armour issue was up 24 cents at $24.84. Saul's preferreds were at $25.75, down from opening levels of $26.00.

In the secondary, BioMed Realty Trust Inc.'s 7.375% series A cumulative redeemable preferreds dominated trading, as the company announced a redemption of the securities.

BioMed active, lower on call

Late Tuesday, BioMed Realty Trust said in a regulatory filing that it intended to redeem all 7.92 million shares of its 7.375% series A cumulative redeemable preferreds (NYSE: BMRPA).

Come Wednesday, the issue was topping the day's most active list, with over 1.7 million shares changing hands. The preferreds were down 19.5 cents to $25.275.

The San Diego-based real estate investment trust will fund the March 15 call in part from a recently priced public offering of common stock.

The call price is $25.30217, which includes accrued dividends up to the call date.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.