Glimcher plans new issue of preferreds; CYS Investments on the active side; ING closes mixed

By Stephanie N. Rotondo

Phoenix, July 31 - Preferred stocks were "printing up," a trader reported at midday on Tuesday.

However, as was the case on Monday, the market sold off "in the last 10 minutes," a market source said.

He said that preferreds were generally up as much as 12 cents on average for $25-par issues at the day's highs. By the end of business, though, the market had sunk to being just 3 to 4 cents up on average.

"I'm not sure what went on there," the source said, adding that some believe that upcoming announcements from the Federal Reserve could be the cause. The source was not fully convinced of that.

Glimcher Realty Trust announced plans for a sale of series H cumulative redeemable perpetual preferreds.

A trader said price talk was 7.5% to 7.625%. At least $50 million of preferreds are expected to be issued, though the trader said that "I'm sure it will be bigger than that."

Meanwhile, CYS Investments Inc.'s $75 million of 7.75% series A cumulative redeemable preferreds were among the day's busiest securities. Early in the session, paper was "just hanging" at lower levels, according to a trader. But the issue managed to recover a bit, leaving the preferreds unchanged.

Away from recent issues, ING Groep NV was actively trading, though it was mixed on the day. A trader said he didn't see any specific news out on Tuesday that would be driving the activity, though news outlets did report that the bank is getting closer to divesting itself of its Asian unit.

The trader speculated that comments made last week by European Central Bank president Mario Draghi were continuing to help out foreign issuers, noting that some of ING's "laggards" - that is, lower-coupon issues - have "room to move up."

Glimcher to bring new issue

Glimcher Realty Trust is planning a sale of series H cumulative redeemable perpetual preferreds, which are being talked between 7.5% and 7.625%, according to a trader.

The deal is expected to price Wednesday.

The trader opined that the expected $50 million issue could get as big as $250 million, considering that the Columbus, Ohio-based real estate investment trust intends to use proceeds to redeem a portion of its outstanding preferreds.

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

CYS trades actively

CYS Investment's recently priced 7.75% series A cumulative redeemable preferreds were among the day's most active securities, according to a market source.

At midday, the issue was "just hanging" at $24.55 bid, according to a trader.

By the end of the day, however, the preferreds were seen unchanged at $25.01.

The deal priced Friday.

ING ends mixed

ING Groep was active but mixed during Tuesday trading.

The 7.375% perpetual hybrid capital securities (NYSE: IDG) were up 6 cents at midday to $24.99, but they closed up only 2 cents at $24.95.

The 8.5% perpetual hybrid capital securities (NYSE: IGK) finished down 12 cents at $25.93.

The Amsterdam-based bank is said to be considering breaking up its Asian life insurance unit and is reportedly in talks with potential bidders.

The company had previously been attempting to sell the unit all in one piece, but, according to a Bloomberg article that cited "people with knowledge of the process," ING could possibly fetch a higher price by breaking the unit up.

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