Midday Commentary: Primary preferred market gets lion's share of attention as calendar picks up

By Stephanie N. Rotondo

Phoenix, June 19 - Preferred stock investors were focusing on the primary market on Tuesday, according to a trader.

Rumors also continued to swirl that there will be "a heavy new issue book" in the near term, the trader commented.

Corporate Office Properties Trust announced plans to sell series L cumulative perpetual preferred shares. A trader said talk was 7.375% to 7.5%.

"It's going well," he said, seeing paper trading at $24.90 in the gray market.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the joint bookrunning managers.

Meanwhile, Qwest Corp.'s $400 million issue of 7% $25-par 40-year notes "has not listed yet," a trader reported. However, that wasn't stopping the notes from performing well. They were quoted at $25.15 bid, $25.20 offered. The deal priced Thursday.

NextEra Energy Capital Holdings Inc.'s $325 million issue of 5.625% $25-par series H junior subordinated debentures due 2072, however, did list Tuesday on the New York Stock Exchange.

The ticker symbol is "NEEPH." The notes were trading at $25.11 in midday trading.

Also, TCF Financial Corp.'s $150 million of 7.5% series A noncumulative perpetual preferred stock - an issue that priced Monday - was already trading above par at $25.17.

"It's a small deal," a trader said.

© 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.