CBL & Associates heralds preferred sale; DTE, Gabelli well over par; Aflac, Torchmark list

By Stephanie N. Rotondo

Phoenix, Sept. 27 - After taking a day off on Wednesday, the preferred stock new issue market began kicking out deals again on Thursday.

CBL & Associates Properties Inc. announced plans to sell a minimum of $100 million series E cumulative redeemable preferreds.

The deal did not price Thursday and was expected to come Friday.

In new listings, Aflac Inc.'s $450 million of 5.5% $25-par subordinated debentures due 2052 were admitted to the New York Stock Exchange Thursday, as were Torchmark Corp.'s $125 million of 5.875% $25-par junior subordinated debentures due 2052.

For its part, Aflac's new issue was among the day's most actively traded securities.

CBL to bring new issue

CBL & Associates Properties will price on Friday a sale of at least $100 million series E cumulative redeemable preferreds, according to a market source.

Price talk is 6.625% to 6.75%, according to a trader.

A trader quoted the issue at $24.65 bid, $24.70 offered in the gray market.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers.

Chattanooga, Tenn.-based real estate investment trust CBL will apply to list the preferred stock on the NYSE under the ticker symbol "CBLPE."

Proceeds will be used to redeem the company's 7.75% series C cumulative redeemable preferreds and for general corporate purposes.

The series C preferreds (NYSE: CBLPC) traded down 48 cents, or 1.87%, to $25.15.

Aflac, Torchmark list

Aflac's new 5.5% $25-par notes officially listed on the NYSE Thursday.

The deal priced Sept. 20. The trading symbol is "AFSD."

The issue was trading at $24.87 at midday, versus opening levels of $24.90. By the end of the day, however, the notes had come back to close at $24.90.

The issue was among the day's most actively traded securities in the preferred realm, with over half a million shares changing hands.

Also, Torchmark's 5.875% junior subordinated debentures due 2052 listed on the NYSE under the ticker symbol "TMKPB."

That deal came Sept. 17. Paper was at $25.41 as of midafternoon, versus $25.50 at the open. At the bell, the notes were trading at $25.45.

DTE, Gabelli well over par

In issues priced this week, both DTE Energy Co.'s new $200 million of 5.25% $25-par 2012 series C junior subordinated debentures due 2062 and Gabelli Equity Trust Inc.'s $105 million of 5% series H cumulative preferreds were seen around $25.20.

Both issues priced Tuesday and freed to trade on Wednesday.

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