Midday Commentary: Pitney Bowes talks new issue around 6.75%; Hersha's recent deal frees up

By Stephanie N. Rotondo

Phoenix, Feb. 26 - The preferred stock market got another prospective new issue on Tuesday, as Pitney Bowes Inc. announced plans to sell $25-par notes due 2043.

Price talk on the deal was around 6.75%, a trader said.

The trader saw the issue bid for at less 22 cents and offered at $24.95 in the midday gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the deal, which includes change-of-control and early call provisions.

Meanwhile, Hersha Hospitality Trust's new $75 million issue of 6.875% series C cumulative redeemable perpetual preferreds freed to trade early Tuesday.

The deal priced late Monday, coming upsized from $65 million.

A trader quoted the paper at $25.10 bid, $25.20 offered.

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