Qwest up in active trading; Capstead lists; Ladenburg expected soon; Allianz bonds falter

By Stephanie N. Rotondo

Phoenix, May 17 - Recent preferred stock deals were holding up in Friday trading.

A trader saw Qwest Corp.'s $750 million of $25-par four-year notes trading in a range of $24.95 to $24.97 during the first half of the day. After the close, a market source said the issue was the day's most actively traded, rising a nickel to $25.05.

The deal came on Tuesday.

From Wednesday business, Entergy Louisiana LLC's $100 million of 4.7% $25-par first mortgage bonds due 2063 were seen at $24.90 bid.

In new listings, Capstead Mortgage Corp.'s 7.5% series E cumulative redeemable preferreds hit the New York Stock Exchange on Friday.

The $150 million deal priced May 8. The ticker symbol is "CMOPE."

Capstead paper was trading up a penny from the previous close at $25.01 as of midday. However, that was down from opening levels of $25.05.

The closing price was $25.07.

The Dallas-based real estate investment trust said Thursday that its over-allotment option had been partially exercised, bringing total issuance up to $170 million.

Meanwhile in the secondary arena, National Bank of Greece SA's $2.25 series A noncumulative preference shares (NYSE: NBGPA) were trading actively and higher following Fitch Ratings' upgrade of the bank on Thursday.

The preference shares were up 14 cents, or 1.51%, at $9.44 at midday. At the close, the issue was up 15 cents, or 1.61%, at $9.45.

Fitch upped the company's viability rating to B- from F.

Ladenburg on tap

No new issues had come as of midday on Friday, but a trader said that Ladenburg Thalmann Financial Services Inc.'s proposed sale of at least $50 million series A cumulative perpetual preferreds could come later in the session or possibly Monday.

"I hear it's going well," the trader said.

The deal was first announced on Tuesday.

Zions sells $1,000-pars

Zions Bancorporation priced $300.89 million of 5.8% $1,000-par series I fixed-to-floating rate noncumulative perpetual preferred stock on Thursday, and details emerged on Friday.

Of the preferreds sold, $250 million were done via an online auction. The auction began Wednesday and ended Thursday at 4 p.m. ET.

A market source quoted the issue at par 3/16 bid, par 15/16 offered.

There will be a fixed rate starting on Dec. 15, 2013, payable on June 15 and Dec. 15 thereafter until June 15, 2023. After that there is a floating rate of Libor plus 380 basis points, payable on March 15, June 15, Sept. 15 and Dec. 15.

Proceeds will be used for general corporate purposes, including a possible redemption of securities.

The financial holding company is based in Salt Lake City.

Allianz slips

Allianz SE's 8.375% undated subordinated callable bonds were off 3 cents in Friday trading, closing at $25.46, according to a market source.

The Munich-based financial services provider announced on May 8 that it was calling all $2 billion of the securities. The redemption date is June 17.

© 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.