Citigroup prices 6.125% $1,000-par preferreds; GSEs higher on Fannie’s quarterly results

By Stephanie N. Rotondo

Seattle, Nov. 5 – The preferred stock market’s primary space had a new deal added to the calendar Thursday from Citigroup Inc.

Citi sold $1.5 billion of 6.125% $1,000-par series R fixed-to-floating rate noncumulative perpetual preferreds, according to a regulatory filing.

Price talk was around 6.25%.

At the close, a market source pegged the issue at 100.5.

Ahead of pricing, a trader said he had not seen any gray market quotes for the paper but did note that “at that price, they will put that away quickly.”

There has been chatter for the past couple of weeks that the New York-based bank was planning a deal. Earlier in the week, one market source told Prospect News that the buzz was ramping up.

Citigroup Global Markets Inc. is the bookrunner.

Meanwhile, Fannie Mae and Freddie Mac preferreds were heading higher. A trader said the gains were due in part to Fannie’s “strong earnings,” which came out Thursday.

Fannie’s (OTCBB: FNMAS) series S preferreds were up 7 cents, or 1.4%, at $5.07. Freddie’s (OTCBB: FMCKJ) series J preferreds meantime improved a nickel, or 1%, to $5.05.

The GSE reported a $1.96 billion profit for the third quarter, down from $3.91 billion the year before. Fannie intends to send a $2.2 billion dividend payment to the Treasury in December.

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