Midday Commentary: PrivateBank hard to find but above par; Discover's new issue hangs in

By Stephanie N. Rotondo

Phoenix, Oct. 12 - It was subdued in the preferred stock market as the week wore down, a trader said Friday.

Even PrivateBancorp Inc.'s new $125 million of 7.125% $25-par subordinated debentures due 2042 were "very thinly traded," the trader said, though he opined that was due more to the small size of the deal.

"Nobody was really allowed in," he said. "So it's tightly held and it's hard to find stock."

Still, the issue was doing well, trading as high as $25.60 in early Friday trading.

The deal came Thursday after the company revised pricing from a 7.375% to 7.5% range to 7.125%. Even ahead of the pricing, the deal had been trading at or above par in the gray market.

Meanwhile, Discover Financial Services' recently priced 6.5% series B noncumulative perpetual preferreds were holding in, according to a trader.

He quoted the issue at $25.35 bid, $25.50 offered. That was down a bit on the bid side, but steady on the offer side.

Discover brought the deal on Tuesday. Like PrivateBancorp, it was immediately trading at or above par.

One new deal was announced Friday, an offering of series A cumulative perpetual preferred stock from Everbank Financial Corp. But a trader said he had not "heard anything about it" as of midday.

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