Midday Commentary: Armour plans to tap market; General Growth hangs in; Selective frees up

By Stephanie N. Rotondo

Phoenix, Feb. 7 - It was a mixed bag for the preferred stock market at midday on Thursday.

But new issues were trickling out, as Armour Residential REIT Inc. announced plans to sell series B cumulative redeemable preferreds.

Price talk is around 8%, according to a trader, who added that there was no selling group on the deal.

He saw the issue quoted at $24.58 bid, $24.62 offered in the gray market.

"It's going to be a small deal," he said.

Meanwhile, General Growth Properties Inc.'s new $250 million of 6.375% series A cumulative redeemable preferreds - a deal that came Wednesday - was "hanging around" $24.83 bid, $24.87 offered.

"It might free by the end of today," a trader said.

Selective Insurance Group Inc.'s recent $175 million issue of 5.875% $25-par senior notes due 2043, however, did free from the syndicate on Thursday. That paper was pegged at $24.75 at midday.

In other recent issues, Zions Bancorporation's $171.8 million of 6.3% series G fixed-to-floating rate noncumulative perpetual preferreds was continuing to do well, trading around $25.50 as of midafternoon.

The issue priced at auction on Jan. 31.

In the secondary, Duke Energy's Progress Energy Carolinas Inc.-linked preferreds were trading up after the company said late Wednesday it was redeeming all three series of the outstanding preferreds - along with five series linked to Progress Energy Florida Inc. - on March 8.

The $4.20 series preferreds (OTOTC: CPWPN) were up $9.60, or 10.38%, at 102.10 at midday. The $5 preferreds (OTOTC: CPWPO) gained $9.25, or 9.14%, to $110.40.

The former issue will be redeemed at $102 plus accrued dividends, while the latter will be called at $110 plus accrued dividends.

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