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Midday Commentary: Sun Communities to price new issue; Everbank frees to trade; Regions lists
By Stephanie N. Rotondo
Phoenix, Nov. 6 - Preferred stocks were mixed to higher on Election Day and new issues continued to be a focus.
The primary market saw another new issue hit the tape Tuesday, as Sun Communities Inc. announced plans to issue at least $50 million of series A cumulative redeemable perpetual preferred shares.
Price talk is around 7.25%, according to a trader.
"It's a small deal," another trader said. "But they were letting people in; it looks like it's doing fine."
"It will probably be packed away to retail," he added, seeing a "standing [$24.65] bid" for paper in the midday gray market. He noted that the bid "could be from a manager."
Meanwhile, City National Corp.'s new $175 million issue of 5.5% series C noncumulative perpetual preferreds - a deal that priced late Monday - was "hanging" around $24.60 bid, $24.70 offered.
In other Monday pricings, Everbank Financial Corp.'s $150 million of 6.75% series A noncumulative perpetual preferreds freed from the syndicate and were trading around $24.70, a trader said.
The trader noted that while Everbank had freed, he had not yet seen the "all clear" on City's new deal.
In new listings, Regions Financial Corp.'s recent $500 million of 6.375% series A noncumulative perpetual preferreds - a deal that priced Oct. 25 - were admitted for trading to the New York Stock Exchange, as was expected.
The ticker symbol is "RFPA." Paper was trading at $24.81 at midafternoon, down 4 cents.
Also listed were Oriental Financial Group Inc.'s 7.125% noncumulative perpetual preferreds.
The symbol is "OFGPD." The shares were at $24.65 at midday, unchanged.
The $24 million deal priced Oct. 31.
Elsewhere in the secondary, a trader remarked that Fannie Mae and Freddie Mac preferreds were "up marginally" following the release of third-quarter results from Freddie.
The government-backed mortgage provider posted a profit of $2.9 billion.
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