Morning Commentary: Calendar quiets down; coming week expected to bring more preferred deals

By Stephanie N. Rotondo

Phoenix, June 13 – The primary preferred stock market took a breather on Friday as no new deals had been announced as of mid-morning.

“I think we’ll see some more stuff come next week,” one trader opined.

From Thursday business, Colony Financial Inc.’s $75 million of 7.5% series B cumulative redeemable preferreds had yet to free up as of early trading, according to a trader.

He saw the issue quoted at $24.60 bid, $24.65 offered.

Also from Thursday, Commerce Bancshares Inc.’s $150 million of 6% series B noncumulative perpetual preferreds had freed to trade.

The preferreds were pegged at $24.80 bid, $24.82 offered early in Friday trading.

As for Bank of America Corp.’s $1.5 billion issue of 5.125% $1,000-par series V fixed-to-floating rate noncumulative preferreds, a trader saw the deal at 99.125 bid, 99.5 offered.

As of Thursday’s close, the issue was at par bid, par 1/8 offered, a trader said.

“So they have pulled back a bit,” he said.

Meanwhile, Capitala Finance Corp.’s $100 million of 7.125% $25-par notes due 2021 were seen around $24.85.

A trader said he was hearing the notes had freed from the syndicate, but he had not seen any confirmation of that claim.

Going back to Tuesday business, Legacy Reserves LP’s $175 million of series B fixed-to-floating rate cumulative redeemable preferred units were trading around $24.65 on Friday.

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