Midday Commentary: Market in Spring Break haze; DDR frees up; Kayne, Main Street plan deals

By Stephanie N. Rotondo

Phoenix, March 26 - The preferred stock market remained muted on Tuesday.

"It seems like everybody is on Spring Break," a trader said.

DDR Corp.'s new $150 million issue of 6.25% class K cumulative redeemable preferreds - which priced Monday - freed in early Tuesday trading.

A trader saw the issue at $24.70 bid, no offers.

The trader noted that two new deals hit the market, but neither was seeing much play.

Kayne Anderson MLP was talking a new issue of series F mandatory redeemable preferreds at 3.5% to 3.625%. While the trader said the company was "AA-rated" and a "strong company," he added that "nobody is going to care with a yield that low."

Main Street Capital Corp. meantime said it would price an offering of $25-par senior notes due 2023.

In the secondary, Exelon Corp. said late Monday that it was redeeming all of its PECO Energy Corp. preferreds.

"That's interesting because of the low coupons," a trader said, adding that the issues had been issued 50-plus years ago.

The redemption date for the four series of preferreds will be May 1. The call price is par plus accrued dividends.

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