Entergy trades in wide range; Forest City prices add-on; Corporate Office makes it to NYSE

By Stephanie N. Rotondo

Phoenix, June 28 - The preferred stock market had "decent volume" during the "kind of mixed day," a market source said Thursday.

"Some issues were down sizably, and others were up," he said.

Another trader noted that market players were starting to pack it in ahead of the Fourth of July.

"I think it will be quiet going into the Fourth," he said.

There was some action, however, in Entergy Louisiana LLC's new $200 million offering of 5.25% $25-par first mortgage bonds due July 1, 2052, which were trading in a wide range.

"It's done quite well," a source remarked.

Meanwhile, Forest City Enterprises Inc. priced a $125 million add-on to its 7.375% $25-par senior notes due Feb. 1, 2034.

Among other recent deals, Corporate Office Properties Trust's $150 million issue of 7.375% series L cumulative perpetual preferreds officially listed on the New York Stock Exchange under the ticker symbol "OFCPL."

Apartment Investment and Management Co.'s class U preferreds were heating up the secondary market. On Tuesday, the company had announced a redemption of that very issue.

Also entering the redeeming business was PNC Financial Services Group Inc. The Pittsburgh-based financial institution said after the bell that it called two series of its trust preferreds, joining a growing list of other banks that have planned similar calls. Since the news came out after the market had closed, the called securities were not affected, though the company's most recent deal was on the day's most active list.

Entergy holds up well

Entergy Louisiana's recently priced 5.25% $25-par first mortgage bonds due July 1, 2052 traded up to $25.25 at midday, according to a trader.

"They seem to have stalled there," the trader said.

But after the market closed, a market source said the paper had traded in a wide range, hitting lows around $25.20 and highs around $25.76.

The notes ultimately closed at the lower end - $25.20 - and the volume-weighted average price was $25.23.

"It's pretty sick," the source said, evoking modern slang. "It's done quite well."

The deal priced Tuesday and freed to trade Wednesday.

The company will apply to list the bonds on the New York Stock Exchange. Settlement is expected Tuesday.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunning managers. JPMorgan Chase & Co. and Raymond James & Associates Inc. are the co-managers.

Proceeds will be used for general corporate purposes.

Entergy Louisiana is the Baton Rouge, La.-based energy-providing subsidiary of Entergy Corp.

Forest City prices add-on

Forest City Enterprises brought a $125 million reopening of its 7.375% senior notes due Feb. 1, 2034 on Thursday.

The company originally issued $100 million of the notes on Feb. 10, 2004. The add-on has an $18.75 million over-allotment option.

The preferreds were sold at $23.7903, or $24.1078 including accrued interest from May 1. The issue price, without interest, was a 3.1% discount to Wednesday's closing price of $24.55.

After the add-on priced, the notes (NYSE: FCY) fell 74 cents, or 3.01%, to $23.81 in well above average trading volume.

Morgan Stanley, Bank of America Merrill Lynch and Barclays Capital Inc. are the joint bookrunners. RBC Capital Markets LLC, PNC Capital Markets LLC and KeyBanc Capital Markets Inc. are the co-managers.

Interest is payable on the first of February, May, August and November.

The paper is redeemable at any time.

Proceeds will be used to redeem a portion of the 7.625% senior notes due June 1, 2015, the company said in a press release.

Settlement is expected Tuesday.

Forest City is a Cleveland-based real estate company.

Corporate Office lists

Corporate Office Properties' 7.375% series L cumulative perpetual preferreds officially listed on the NYSE Thursday. The ticker symbol is "OFCPL."

The preferreds ended up 9 cents at $25.04.

The deal priced June 20 and, on Wednesday, the company said its $22.5 million over-allotment option had been exercised in full, bringing the total amount priced to $172.5 million.

Corporate Office Properties is a Columbia, Md.-based real estate investment trust.

BGC 'doing all right'

A trader said BGC Partners Inc.'s $100 million issue of 8.125% $25-par senior notes due June 15, 2042 was "doing all right," trading at $24.95 bid, par offered.

The deal priced June 21.

On Thursday, the company said it had exercised its greenshoe, bringing in another $12.15 million.

BGC Partners is a New York-based inter-dealer broker.

Aimco gets busy

Aimco's 7.75% class U cumulative preferred stock (NYSE: AIVPU) was dominating trading in the secondary space.

The issue closed down fractionally at $25.03.

On Tuesday, the Denver-based REIT said it will redeem the issue on July 26. The redemption price is $25.0646.

PNC joins redemption gang

PNC Financial Services Group's 6.125% series P fixed-to-floating-rate noncumulative preferreds (NYSE: PNCPP) fell 2 cents to $26.11.

The issue was among the day's most actively traded securities.

The company announced after the bell that it called two series of its trust preferreds: the 7.75% trust preferreds issued by PNC Capital Trust E (NYSE: PNH) and the 8% enhanced trust preferreds issued by National City Capital Trust IV (NYSE: NCCPC).

However, because the news came after the close, those two issues were not as actively traded.

The 7.75% TRUPs earned 4 cents to close at $25.96, and the 8% paper was flat at $25.28.

The redemption will occur July 30 and is being funded with available cash. PNC said it launched the redemption by way of a "capital treatment event," referring to the Federal Reserve's new proposed rules on how regulatory capital will be classified.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.