Midday Commentary: First Horizon plans sale of noncumulative preferreds; SoCal yet to free up

By Stephanie N. Rotondo

Phoenix, Jan. 24 - Yet another new issue entered the preferred stock market on Thursday.

First Horizon National Corp., a Memphis-based bank holding company, said it would sell at least $100 million of series A noncumulative perpetual preferreds. Price talk is around 6.25%, according to a trader.

The trader saw a $24.72 bid for the paper in the gray market at midday.

Meanwhile, Southern California Edison Co.'s SCE Trust II linked 5.1% trust preference shares - a $500 million deal that priced Wednesday - had yet to free from the syndicate, a trader said.

"It'll probably free sometime today," he said, seeing the issue trading around $24.80.

And, General Electric Capital Corp.'s newly priced $550 million of 4.875% $25-par senior notes due 2053 - an issue that price Tuesday and freed on Wednesday - was seen hitting par in early Thursday trading.

A trader quoted the notes at par bid, $25.05 offered.

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