Webster, Prudential enter primary market; Telephone & Data frees from syndicate, pops

By Stephanie N. Rotondo

Phoenix, Nov. 27 - Preferred stocks were "just sitting still," a trader said at midday on Tuesday.

"I thought we'd see a pop in our market" given the new bailout deal that European lawmakers had agreed to for Greece, the trader said. Alas, that was not the case.

Even two new deals that were announced early in the session were not getting much play, "but they seem to be doing well," the trader remarked.

Webster Financial Corp. announced an offering of series E noncumulative perpetual preferred stock, talked around 6.5%.

Prudential Financial Inc. is meantime planning a sale of at least $250 million $25-par junior subordinated notes due Dec. 15, 2052. Price talk is 5.75% to 5.875%, according to a trader.

Neither of those deals priced as of press time.

"We'll probably get one more deal before the weekend," a trader said. "The way we're going, we could see two more. Who knows?"

Prudential, Webster on tap

Prudential Financial and Webster Financial both added deals to the primary calendar Tuesday, but neither deal had priced as of press time.

As of midday, Webster's planned offering of series E noncumulative perpetual preferreds was seen at $24.80 bid. At the market's close, a source placed the issue at $24.70.

Prudential's proposed $25-par junior subordinated notes due 2052 were quoted at $24.70 bid, $24.75 offered in the gray market at midafternoon. By day's end, a source had seen a trade at $24.76.

Telephone & Data frees

Of Monday's deals, Telephone & Data Systems Inc.'s $175 million of 5.875% $25-par senior notes due 2061 were pegged at $24.70 bid, $24.85 offered at midday.

By the bell, the issue had freed to trade, according to a source. He said the issue was the most actively traded of the day, being the only issue with more than 1 million shares trading.

"It opened very low," he said, but ended up 30-plus cents at par. However, he said the volume weighted average price was more indicative of where it was actually trading.

The VWAP was $24.88, which was "still up a lot," he said, about 20-some cents.

Meanwhile, Entergy New Orleans Inc.'s $30 million of $25-par first mortgage bonds due 2052 were at $24.70 bid, $24.85 offered at midday.

After the close, a market source said the issue had opened at $24.88 and closed at that same level, though there were trades as high as par.

First Republic lists

First Republic Bank's $150 million of 5.625% series C noncumulative perpetual preferreds - a deal that came Nov. 15 - listed on the New York Stock Exchange Tuesday, as was expected.

The ticker symbol is "FRCPC." The shares closed at $24.78, down from the previous session's price of $24.90.

The issue had opened at $24.84.

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