Midday Commentary: Market sees influx of new deals; Citi, CYS, Arlington planning new issues

By Stephanie N. Rotondo

Phoenix, April 23 - The primary preferred stock market was kicking out deals on Tuesday, and the buzz was that there were more to come.

"The word is that there's going to be more deals coming this week," a trader said.

Citigroup Inc. announced plans for an offering of $1,000-par series D fixed-to-floating rate noncumulative perpetual preferred stock.

"I believe that's all institutional," a trader said, noting that he wasn't seeing any "real markets" for paper, aside from a 99.75 bid.

"It doesn't seem like it's trading around in the gray market much," he said at midday.

Meanwhile, CYS Investments Inc. said it would price an offering of series B cumulative redeemable preferreds. A trader said the deal had already launched and closed and that pricing was expected sometime Tuesday.

Price talk is around 7.5%, according to the trader. He quoted the issue at $24.80 bid, $24.82 offered in the gray market.

Arlington Asset Investment Corp. also prepped a deal, which a trader said was a "best efforts" sale of $25-par senior notes due 2023.

However, the trader saw no gray market trading in that issue.

Shortly before midday, Teekay Offshore Partners LP priced $150 million of 7.25% series A cumulative redeemable preferreds.

The deal was originally announced on Monday.

A trader saw the preferreds at $24.92 bid. The issue freed to trade shortly after pricing.

© 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.