Midday Commentary: New issue calendar quiets down; Entergy's $25-par notes free in early trading

By Stephanie N. Rotondo

Phoenix, May 16 - The preferred stock primary market was taking a breather on Thursday, as no fresh deals were announced.

"I'm not hearing of anything probably for the rest of the week," a trader said.

However, Zions Bancorporation is slated to complete an online auction of up to $250 million of series I fixed-to-floating rate noncumulative perpetual preferreds later in the day. The auction is scheduled to end at 4 p.m. ET.

As far as recently priced deals, most were holding steady.

Entergy Louisiana LLC's new $100 million issue of 4.7% first mortgage bonds due 2063 - a $25-par issue - freed early in the day and was pegged at $24.95 at midday.

Qwest Corp.'s $750 million of 6.125% $25-par notes due 2053 - a deal that came Tuesday - was also seen at that level.

A trader remarked that he wasn't even seeing many markets for recent $1,000-par issues from UBS AG and Fifth Third Bancorp. He said he believed both were trading just slightly north of par.

UBS sold $1.5 billion of 4.75% fixed-to-floating rate contingent convertible notes on Wednesday. Fifth Third brought $600 million of 5.1% series H fixed-to-floating rate noncumulative perpetual preferreds on Monday.

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