Midday Commentary: Public Storage planning new issue; Southern California Edison, State Street list

By Stephanie N. Rotondo

Phoenix, March 10 - The preferred stock market was starting the week slightly soft, according to the Wells Fargo Hybrid and Preferred Securities index.

The index was off 3 basis points at mid-morning.

A trader said Public Storage was launching an offering of at least $150 million preferred shares with price talk at 6.5%.

Few official details were available, he noted. Pricing is expected later Monday or Tuesday, however.

"There's no selling group," he added, seeing paper offered at $24.75 in the gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

The Glendale, Calif.-based real estate investment trust intends to use the proceeds for debt repayment.

Among deals that have already priced, Southern California Edison Co.'s $275 million of 5.75% fixed-to-floating rate trust preference securities and State Street Corp.'s $750 million of 5.9% series D fixed-to-floating rate noncumulative perpetual preferreds were admitted to the New York Stock Exchange on Monday.

Southern California Edison priced Feb. 27, and State Street came Feb. 25.

Southern California Edison's ticker symbol is "SCEPH." The State Street preferreds listed under "STTPD."

Southern California Edison was trading at $25.10 early in the session, on par with the opening level price. State Street was at $25.38 versus an open of $25.45.

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