United States Cellular notes trade up; Hersha Hospitality plans cumulative preferreds sale

By Andrea Heisinger

New York, May 10 - The primary preferred stock market produced no new paper on Tuesday, but those in the market were watching how United States Cellular Corp.'s $25-par senior notes sold late Monday performed in trading.

Those bonds were at first seen hovering near issue price and then "moved up a little" later in the afternoon, a source said.

Other than that bit of activity, the market was quiet, a source said early in the afternoon.

"Everything is moving up," he said, citing a lack of new issues. "Stuff is slowing coming into where corporate yields are."

The "market was up" for the day, another source said. "It was a light news day, nothing much in the headlines."

He added that issues were up 5 to 10 cents per share overall. The top three most-active preferreds being traded were from financial names including Citigroup Inc., Deutsche Bank AG and Goldman Sachs Group, Inc.

Later in the day, a deal was announced by Hersha Hospitality Trust. No size was given, and pricing is expected on Wednesday.

The trust plans to price perpetual series B cumulative redeemable preferred shares at $25 each.

A market source said the size is "likely to be under $100 million."

The bookrunners are Bank of America Merrill Lynch, Barclays Capital Inc., Morgan Stanley & Co., Inc. and Raymond James & Associates.

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