Goldman Sachs deal frees; Urstadt Biddle trades above par; Discover's issue lists on NYSE

By Stephanie N. Rotondo

Phoenix, Oct. 18 - Though the preferred stock market ended the session flat, recent preferred stock deals continued to do well in Thursday trading.

The Goldman Sachs Group Inc.'s new $750 million issue of 5.95% series I noncumulative perpetual preferreds freed later in the day and was trading above par all day.

The issue priced Wednesday afternoon.

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, a trader said.

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.

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.

Goldman deal frees up

Investment bank Goldman Sachs Group priced an offering of 5.95% series I noncumulative perpetual preferreds on Wednesday, and the deal freed from the syndicate in Thursday's session.

The preferreds were seen at $25.10 in early trading, a trader said, though at that time the issue had yet to free up.

After the bell, a market source confirmed that it had freed, seeing the paper close at $25.14.

When the issue priced Wednesday, it came upsized from $250 million. Price talk was initially 6.125% to 6.25% but was soon revised to 5.9% to 6%.

Urstadt above par

Greenwich, Conn.-based real estate investment trust Urstadt Biddle Properties saw its new 7.125% series F cumulative redeemable preferreds gaining ground in Thursday trading.

A trader quoted the issue at $25.17 bid, $25.25 offered.

The $112.5 million deal came Wednesday morning, upsized from $75 million.

Discover admitted to NYSE

Discover's recently priced 6.5% series B noncumulative perpetual preferreds listed on the NYSE under the symbol "DFSPB," as was expected.

The deal priced Oct. 9, and the company said its $75 million greenshoe was exercised on Tuesday.

The preferreds were down 2 cents at $25.41 on Thursday.

SunTrust loses weight

SunTrust Banks Inc.'s variable rate series A perpetual preferreds (NYSE: STIPA) were the most actively traded securities of the day, a market source said, though there was no news out to explain the surge in activity.

"It probably has to do with the rebalancing of the [Standard & Poor]'s preferred stock index," he said.

The issue fell 29 cents, or 1.25%, to $23.16. About 1.26 million shares changed hands.

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