Midday Commentary: Goldman Sachs, Urstadt trade above par; Discover's issue lists on NYSE

By Stephanie N. Rotondo

Phoenix, Oct. 18 - Recent preferred stock deals continued to do well in Thursday trading, a trader said.

The Goldman Sachs Group Inc.'s new $750 million issue of 5.95% series I noncumulative perpetual preferreds were seen at $25.10 in early trading, the trader said, though he added that the deal had not yet freed from the syndicate.

The issue priced Wednesday, coming upsized from $250 million. Price talk was initially 6.125% to 6.25% but was soon revised to 5.9% to 6%.

Also, Urstadt Biddle Properties Inc.'s $112.5 million of 7.125% series F cumulative redeemable preferreds - a deal that priced early on Wednesday - was on the rise, as a trader quoted the issue at $25.17 bid, $25.25 offered.

In new listings, Discover Financial Services' $575 million of 6.5% series B noncumulative perpetual preferreds listed on the New York Stock Exchange, as was expected.

The deal priced Oct. 9.

The preferreds (NYSE: DFSPB) were down 3 cents at $25.40 as of midday.

A trader remarked that he "heard there was a possible deal coming today" but had not heard anything further. As such, he opined that the deal could come Friday or Monday.

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