Preferreds end week sideways; new issues stay in focus; First Horizon's deal comes in

By Stephanie N. Rotondo

Phoenix, Jan. 25 - Preferred stocks were "hanging in there" in Friday trading, according to a trader.

"We've sold off a little bit because we had such a good run," he said. He noted that while preferreds were down a touch, there was "no heavy selling."

By the end of business, the preferred market was about sideways from Thursday, according to a market source. A majority of the focus was spent on new and recent issues.

First Horizon National Corp.'s new $100 million of 6.2% series A noncumulative perpetual preferreds were seen at $24.55 at midday.

The deal priced Thursday.

In other recent issues, General Electric Capital Corp.'s $550 million of 4.875% senior notes due 2053 were at $25.05, while Southern California Edison Co.'s SCE Trust II-inked 5.1% trust preference shares were coming in at $24.65 bid, $24.75 offered.

A trader said that NuStar Logitics LP's recently priced $350 million of 7.625% fixed-to-floating rate subordinated notes due 2043 are expected to list "anytime" under the symbol "NSS."

NuStar brought the deal Jan. 14. Earlier in the week, the company said that its greenshoe had been exercised in full, bringing total issuance up to $402.5 million.

And, KKR Financial Holdings LLC's $325 million of 7.375% series A LLC perpetual preferreds are expected to hit the New York Stock Exchange on Monday under the ticker symbol "KFP."

The deal priced Jan. 10. A trader quoted the issue around $25.95 on Friday.

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