Preferred Stock Midday Commentary: Market on the rise; Public Storage prices; ING gains

By Stephanie N. Rotondo

Phoenix, June 6 - A trader said the preferred stock market "kind of popped just with the overall market" during midday trading on Wednesday.

In the primary space, Public Storage priced a $250 million issue of 5.625% series U cumulative preferreds. The issue was trading at $24.65 bid, $24.70 offered in the gray market.

"It's a strong name," a trader said. "Those levels, for a name like Public Storage, it's not bad."

The new preferreds came at the low end of price talk set at 5.625% to 5.75%.

Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers. Wells Fargo is the lead on the deal.

J.P. Morgan Securities LLC and RBC Capital Markets are the co-managers.

Proceeds from the sale will be used to redeem $172.5 million of 7% series N cumulative preferred shares. Any remaining funds will be used for general corporate purposes, which may include investments in self-storage facilities and other possible redemptions.

The series Ns (NYSE: PSAPN) were unchanged at $25.42.

Meanwhile, in secondary dealings, a trader said that ING Groep NV had put out a report that claimed its Spanish portfolio was performing better than expected. As such, the bank's preferreds were trading upward, like the 7.375% perpetual hybrid capital securities (NYSE: IDG), which gained 27 cents, or 1.15%, to $23.24.

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