Midday Commentary: Entergy Louisiana talks new deal; UBS prices CoCo; Qwest nears par

By Stephanie N. Rotondo

Phoenix, May 15 - The primary preferred market showed no signs of letting up on Wednesday, as more deals were announced.

Entergy Louisiana LLC said it was bringing $25-par first mortgage bonds due 2063. A trader said the offering was "a small deal, no selling group."

He pegged the issue at less a dime bid, less a nickel offered in the midday gray market.

The trader also said that UBS AG had priced a $100-par contingent convertible offering. The securities were fixed-to-floating, with the initial dividend set at 4.75%.

The trader saw the issue at $99.90 bid around noon.

Among recent deals, Qwest Corp.'s $750 million of 6.125% $25-par notes due 2053 were seen at $24.95, while Fifth Third Bancorp's $600 million of 5.1% series H perpetual fixed-to-floating rate noncumulative preferreds - a $1,000-par issue - were "about one-eighth over par," according to a trader.

Qwest came Tuesday, and Fifth Third priced Monday.

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