Morning Commentary: Atlas’ preferred units sale yet to price; Dominion trading above par

By Stephanie N. Rotondo

Phoenix, Sept. 25 – The preferred stock market was again soft in early Thursday trading.

The Wells Fargo Hybrid and Preferred Securities index was down 7 basis points at mid-morning.

A trader said that the market was on the quiet side, speculating that Rosh Hashana – the Jewish New Year – was taking people away from their desks; thus, little was getting done.

Atlas Resource Partners LP’s planned offering of at least $50 million of class D cumulative redeemable perpetual preferred units had yet to price as of morning trading, though the deal is expected to come sometime during the session.

Morgan Stanley & Co. LLC and UBS Securities LLC are leading the non-rated deal.

But Dominion Resources Inc.’s $685 million of 5.75% $1,000-par series A enhanced junior subordinated notes due Oct. 1, 2054 were seen trading at 100.5 bid.

That issue priced Wednesday.

The company officially called its 8.375% 2009 series A enhanced junior subordinated notes due 2064 (NYSE: DRU) late Wednesday. Proceeds from the new issue will be used to redeem the debt.

The notes were trading at $25.16 Thursday morning, down 4 cents from Wednesday’s close.

Also from this week’s business, Qwest Corp.’s $500 million issue of 6.875% $25-par senior notes due 2054 continued to languish in a $24.50 to $24.60 context.

Those notes came Monday.

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