Preferreds open week with firm tone; American Capital Mortgage, Apartment Investment list

By Stephanie N. Rotondo

Phoenix, May 19 - Preferred stocks were pushing up early in the first trading session of the week, even as one trader opined the coming days would be slow.

I think it's going to be a slow week with the holiday next Monday," the trader said, referring to Memorial Day. "A lot of people are taking Thursday and Friday off."

As such, he said he heard of no new deals as of early Monday. If any new issues do come, another market source opined, it will likely be no later than Wednesday, given the upcoming holiday.

The Wells Fargo Hybrid and Preferred Securities index was up 5 basis points at mid-morning. By the bell, it had risen to 11 bps higher.

Recent deals have been seeing a quick turnaround in terms of listing of late. On Monday, both American Capital Mortgage Investment Corp. and Apartment Investment and Management Co. saw their recently priced new issues listing on their respective exchanges.

American Capital's $50 million of 8.125% series A cumulative redeemable preferred stock began trading on the Nasdaq Global Select Market under the ticker symbol "MTGEP."

The deal priced May 15.

One trader saw the shares bid for at $24.80 early in the day. The Nasdaq price was $24.84, which compared to opening levels of $24.70.

The shares closed at $24.87.

As for Aimco's $125 million of 6.875% class A cumulative perpetual preferred stock, it listed on the New York Stock Exchange under the symbol "AIVPA."

A trader quoted the paper wide at $25.10 bid, $25.40 offered. Paper ended at $25.30, which was unchanged from opening levels.

The deal came May 12.

BreitBurn greenshoe sold in full

BreitBurn Energy Partners LP fully exercised its $25 million greenshoe on its issue of 8.25% series A cumulative redeemable preferred units, according to a market source on Monday.

The exercise lifts the amount outstanding to $200 million from an initial $175 million.

The deal priced May 14.

On word of the greenshoe's use, a trader quoted the units at $24.86 bid, $24.92 offered. At the close, another source pegged the securities at $24.95, up a nickel on the day.

The source also noted that the units were among the day's most actively traded securities, with about 413,000 units being exchanged.

BreitBurn is a Los Angeles-based oil and gas partnership.

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