Ally new issue, trust preferreds take focus, drift lower; Telephone & Data holding its ground

By Stephanie N. Rotondo

Portland, Ore., March 23 - The preferred stock market continued to focus in on Ally Financial Inc.'s new deal on Wednesday, according to market sources.

The deal priced late Tuesday at par of $25.00. Though it traded up initially, a slow and softer market pushed it down, a trader said. The 8.125% hybrid trust preferreds issued by Ally's GMAC Capital Trust I were also weighed down.

Telephone & Data Systems Inc.'s recent new deal was also getting some attention, though the preferreds were about unchanged. A trader speculated that the shares would rise once officially listed.

Ally preferreds come in

Ally Financial's new 8.5% series A preferreds "came in today," a trader said, closing at $24.95.

The preferreds hit a high of $25.20 to $25.30 on Tuesday, the trader said.

The 8.125% hybrid trust preferreds meantime fell 9 cents to $25.50 at midday.

At another desk, a trader said the 8.5% preferreds dropped 13 cents to par, while the 8.125% preferreds came in 10 cents to $25.49.

The 8.5% series A five-year non-cumulative perpetual preferreds were sold by General Motors Co.'s GM Preferred Finance Co. Holdings LLC on Tuesday. The company sold $1.02 billion of the preferreds.

Ally did not receive any of the proceeds from the sale.

Telephone & Data hanging in

A trader said Telephone & Data Systems' issue of 7% senior notes due 2060 was trading "where it's been" at $24.80.

"I still think that's a little cheap," he said, though he opined that "once it gets listed, it should start trading up."

The Chicago-based telecommunications company priced the $300 million issue on Monday at par of $25.00.

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