Midday Commentary: Allstate's noncumulatives list on NYSE; Full Circle Capital reported on tap

By Stephanie N. Rotondo

Phoenix, June 17 - The preferred stock market was "bouncing around," a trader said Monday, though he noted that it was on low volume.

The trader also opined that the market was moving back up to the highs it was at before the recent sell-off. He said preferred securities were about 60% closer to those previous levels.

Allstate Corp.'s $250 million of 5.625% series A noncumulative perpetual preferreds hit the New York Stock Exchange on Monday, under the ticker symbol "ALLPA."

Paper was trading at $24.95 at midday, up 30 cents, or 1.22%, from the previous close.

The deal priced June 6. On Wednesday, the company said its greenshoe had been exercised in full, bringing total issuance up to $287.5 million.

Meanwhile, a trader said he had not heard much in the way of new deals, though the chatter was that Full Circle Capital Corp. was bringing its previously announced offering of $25-par senior notes some time this week.

"It's small," the trader said. The company said on May 2 that it would sell at least $25 million of the notes.

The deal will come via Ladenburg Thalmann & Co.

Proceeds from the proposed offering will be used to pay down debt.

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