Midday Commentary: Entergy's new $25-par notes free up; Forest City eyes reopening; TCF lists

By Stephanie N. Rotondo

Phoenix, June 27 - The preferred market was again taking a bit of a pause Wednesday, according to a trader.

The trader attributed the recent lackluster sessions to shaky economic data and continued concerns about Europe.

"Unless we start getting better economic data, the market is just going to stagnate," he said.

He also noted that the pending July 4 holiday could also be taking attention away from the markets.

In midday goings-on, Entergy Louisiana LLC's newly priced $200 million offering of 5.25% $25-par first mortgage bonds due July 1, 2052 had freed from the syndicate, a trader reported.

The notes were trading at $25.20 on the break.

"I don't know how much higher that's going to go," the trader said.

The deal priced Tuesday.

Also, Forest City Enterprises Inc. announced an add-on to its $100 million of 7.375% senior notes due Feb. 1, 2034.

The $25-par bonds (NYSE: FCY) were trading down a nickel at $24.55 at midday.

Proceeds from the reopening will be used to redeem a portion of the company's 7.625% senior notes due June 1, 2015.

In other recent deals, TCF Financial Inc.'s $150 million of 7.5% series A noncumulative perpetual preferred stock - a deal that priced June 18 - officially listed on the New York Stock Exchange under the ticker symbol "TCBPB."

Paper was trading down 7 cents to $25.26.

The company intends to use proceeds from the preferred stock sale to redeem $115 million of its 10.75% series I capital securities, TCF said in a press release issued Monday.

The trust preferreds (NYSE: TCBPA) had moved up in mid-afternoon trading, gaining 2 cents to $25.53.

The issue will be called July 30.

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