Positive data boost preferreds; Seaspan frees, trades north of par; Farmer Mac lists

By Stephanie N. Rotondo

Phoenix, March 28 - The preferred stock market was inching higher Friday as new economic data showed that consumers were spending more and inflation was low.

The Wells Fargo Hybrid and Preferred Securities index was up 11 basis points as of mid-morning. It closed up 17 bps.

Seaspan Corp.'s $300 million of 6.375% $25-par notes due 2019 freed to trade after pricing late Thursday.

A trader saw the issue at $25.25 early in the session. At the close, another market source said the notes ended at $25.20 bid.

"So good job by these underwriters," he commented.

The Sterne Agee & Leach-led deal was originally talked in a range of 6.25% to 6.5%. Prior to pricing, market sources were hearing that the deal was garnering a lot of demand.

Meanwhile, Federal Agricultural Mortgage Corp.'s $75 million of 6.875% series B noncumulative perpetual preferreds listed on the New York Stock Exchange Friday.

The BofA Merrill Lynch-led deal priced March 20. The ticker symbol is "AGMPB."

Paper was trading at $24.75, down 10 cents from the previous day's close. The issue hit a high of $24.95 during the session.

No other new deals were seen, but a trader opined that "we should see some deals next week."

"The market is right for it," he said.

Citigroup to redeem TruPs

Late Thursday, Citigroup Inc. announced it was redeeming three series of trust preferred securities. Come Friday, those issues were trading mostly higher.

The 6% Citigroup Capital IX TruPs (NYSE: CPS) were up 7 cents at $25.29, and the 6.35% Citigroup Capital XVII TruPs (NYSE: CPE) gained 3 cents to close around $25.17.

Another 6% Citigroup Capital XI TruPs issue (NYSE: CPQ) dipped 3 cents to $25.10.

The redemption date is April 28. Holders of the Capital IX shares will receive par plus 31.25 cents per share. The Capital XVII shares will be called at par plus 18.962 cents per share, and the Capital XI preferreds will be redeemed at par plus 12.917 cents.

Elsewhere in the New York-based bank's structure, the 6.875% series K fixed-to-floating rate noncumulative preferreds (NYSE: CPK) were trading actively and better, rising a penny to $25.95.

The 6.875% series L noncumulative preferreds (NYSE: CPL) were also busy, gaining 2 cents to finish at $25.13.

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