New and recent issues focus of preferred stock investors; Pitney, Telephone & Data list

By Stephanie N. Rotondo

Phoenix, Dec. 4 - New and recent issues continued to be active in the preferred stock market Tuesday as investors remained focused on "fiscal cliff" dealings.

"The president said that the market is poised to take off if they can get a deal done, which I think is true," a trader said. It remained unclear, however, if Congress could come to terms before the end of the year.

"There was not a lot going on," another market source said of the still barely firm marketplace. He noted that newer issues made up the bulk of the day's biggest traders.

In new listings, Pitney Bowes Inc.'s $100 million of $25-par senior notes due Nov. 27, 2022 and Telephone & Data Systems Inc.'s $175 million of 5.875% senior notes due Dec. 1, 2061 were admitted to the New York Stock Exchange on Tuesday.

The ticker symbols are "PBIPA" and "TDA," respectively.

New deals announced, priced

In new deals, Summit Hotel Properties Inc. sold $67.5 million of 7.875% series B cumulative redeemable perpetual preferred stock on Tuesday.

A trader said he saw a $24.93 bid for the paper but added that "I'm not hearing of any trades going on."

Meanwhile, Tortoise Energy Infrastructure Corp.'s $80 million of 4.375% $10-par series B mandatory redeemable preferred stock - a deal that priced Monday - was pegged at par bid, $10.10 offered at midday.

CoreSite Realty Corp. then announced plans for a new issue of series A cumulative redeemable preferred stock, talked at 7.25% to 7.375%.

A trader saw a less 40-cent bid in the gray market at midafternoon. That deal had not priced as of press time.

Also, First PacTrust Bancorp Inc. priced a $45 million add-on to its 7.5% $25-par senior notes due 2020.

The company had originally issued $33 million of the notes in April of this year.

The notes (Nasdaq: BANCL) closed down 35 cents, or 1.37%, to $25.25.

Recent deals stay active

Recent new issues - deals done in the last week or so - were on the busy side during the trading session.

Comcast Corp.'s $250 million of 5% senior notes due 2061 - a deal that priced Thursday and freed to trade on Monday - was again the number one trader, holding in at par.

Kimco Realty Corp.'s $175 million issue of 5.625% class K cumulative redeemable perpetual preferreds was also active, rising a nickel to $24.70.

That deal came Nov. 28.

And, Prudential Financial Inc.'s $500 million of 5.75% $25-par junior subordinated notes due Dec. 15, 2052 - another deal that came Nov. 28 - closed up 53 cents at $25.60, "toward the high trade of the day," a market source said.

However, he noted that the volume weighted average price was $25.14, adding that most of the day's trades occurred between par and $25.25.

Pitney, Telephone & Data list

Pitney Bowes' 5.25% senior notes were admitted to the NYSE on Tuesday under the ticker symbol "PBIPA."

The issue priced Nov. 20. The notes were quoted at $24.95 bid, $24.99 offered by a trader at midday.

The notes ended the day at par, which compared to opening levels of $25.19.

Telephone & Data Systems' 5.875% senior notes also hit the NYSE.

The ticker symbol is "TDA." The notes priced Nov. 26.

Paper was trading at $24.94 as of midafternoon, versus opening levels of $24.95. The issue closed at $24.90.

© 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.