Preferred stocks give up early gains amid tepid trading; Urstadt Biddle, Citigroup price

By Stephanie N. Rotondo

Phoenix, Oct. 22 – The preferred stock market “faded at the last minute,” a market source said Wednesday.

The market had been up in early trading, but as the common equity market sold off, preferreds gave back a little too.

“The market was up about 5 [basis points] most of the day,” the source said. But then it erased those gains and finished flat.

Urstadt Biddle Properties Inc. announced that it had priced its proposed offering of series G cumulative redeemable perpetual preferred stock.

The company launched the deal on Tuesday, with price talk in a 6.625% to 6.875% range. The deal came at par to yield 6.75%.

The deal was also modestly upsized to $70 million from $61.25 million.

A trader said the new issue was “doing well” post-pricing, seeing a $24.98 bid for paper.

BMO Capital Markets was the bookrunner.

Also in the primary arena, Citigroup Inc. announced and priced $1.5 billion of 5.8% $1,000-par series N fixed-to-floating rate noncumulative preferreds.

Price talk was in the 6% area, according to a trader.

The dividend will be fixed until Nov. 15, 2019, at which point it will begin floating at Libor plus 409.3 bps.

Citigroup Global Markets Inc. was the bookrunner.

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