Qwest's issue in holding pattern; four recent deals list on NYSE; secondary gets modest boost

By Stephanie N. Rotondo

Portland, Ore., March 23 - The preferred stock market ended Friday's session just slightly higher, though volume was thin, according to a market source.

"There's a lot of people out," he said. "It was not a busy day, but it did get busy towards the end.

"It was a bizarre day. The market was mostly up, but nobody seems to know why."

Qwest Corp.'s new $25-par notes weren't getting much traction one way or another.

In other primary market news, four recent deals - including new issues from Medley Capital Corp. and Colony Financial Inc. - listed on Friday.

Qwest hangs in

Qwest's $500 million issue of 7% $25-par notes due April 1, 2052 wasn't moving much in either direction, traders reported Friday.

The deal was originally announced Wednesday and came at the low end of price talk.

A trader noted that the deal freed from the syndicate, seeing the notes trade at $24.90 in the gray market ahead of the bell.

After the bell, a market source said he saw notes trade as high as par, and the volume-weighted average price came to $24.87.

"That's probably more indicative of the market," he said of the VWAP.

The notes (Baa3/BBB-/BBB-) are non-callable for five years.

The company will apply to list the bonds on the New York Stock Exchange. Settlement is expected April 2.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners. The lead manager was RBC Capital Markets. The co-managers were Raymond James & Associates Inc. and U.S. Bancorp Investments Inc.

Proceeds will be used, together with available cash or additional borrowings available under CenturyLink, Inc.'s revolving credit facility, to repurchase two series of debt securities for a purchase price of up to $500 million through a tender offer, Qwest said in a prospectus filed with the Securities and Exchange Commission.

Qwest is a Monroe, La.-based telecommunications company.

Recent deals list on NYSE

Four recent deals officially made their way onto the New York Stock Exchange Friday.

Medley Capital's $40 million issue of 7.125% $25-par notes due 2019 listed under the symbol "MCQ." The preferreds closed at $24.89, up from opening levels of $24.75.

Colony Financial put up its $130 million of 8.5% series A cumulative redeemable perpetual preferreds under the symbol "CLNYPA." They fell 14 cents to $24.75.

Both of those deals priced March 13.

Also, AXIS Capital Holdings Ltd.'s $400 million of 6.875% series C noncumulative perpetual preferreds (NYSE: AXSPC) moved up 6 cents up on listing, ending at $25.47. AXIS priced the sale on March 12.

From a deal priced March 9, Kimco Realty Corp.'s $400 million issue of 6% class I cumulative perpetual preferreds (NYSE: KIMPI) lost 22 cents, ending at $24.66.

Secondary posts modest gains

In secondary trading, Citigroup Inc.'s 8.5% fixed-to-floating trust preferreds (NYSE: CPJ) were active and firmer, rising 11 cents to $26.14.

Wells Fargo & Co.'s 8% series J noncumulative perpetual preferreds (NYSE: WFCPJ) were also higher, but more modestly than Citigroup's preferreds. The securities gained 2 cents, closing at $29.42.

In foreign-based financials, Deutsche Bank AG's 6.55% trust preferreds (NYSE: DXB) moved up 14 cents to $24.18.

General Electric Capital Corp.'s 6.45% $25-par notes due 2046 (NYSE: GER) improved by 8 cents to $25.84.

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