Preferred Stock Midday Commentary: New issues keep market buzzing; GE Capital trading north of par

By Stephanie N. Rotondo

Phoenix, June 8 - A preferred stock trader said he was hearing that new issuance was expected to ramp up in the near term.

"I heard we'll probably see a couple more deals next week," he said during midday trading on Friday.

The current week's deals were meantime performing well.

General Electric Capital Corp.'s new $2.25 billion issue of 7.125% $100,000-par series A fixed-to-floating rate noncumulative perpetual preferred stock was "doing really well," the trader said.

The issue was trading at 103.125 bid in the gray market, he said.

Dividends will be payable semi-annually at the fixed rate through June 15, 2022. The coupon will then convert to a floating rate equal to three-month Libor plus 529.6 basis points.

Meanwhile, American Financial Group Inc.'s $200 million offering of 6.375% $25-par senior notes due June 12, 2042 freed from the syndicate and was trading at $24.70 bid in the gray.

And, Public Storage's 5.625% series U cumulative perpetual preferreds were on the rise, with a trader quoting the issue at $24.80 bid, $24.85 offered.

That deal priced Wednesday. GE Capital and American Financial priced Thursday.

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