Morning Commentary: Capital One’s new deal frees to trade; Urstadt Biddle lists on NYSE

By Stephanie N. Rotondo

Phoenix, Oct. 29 – Preferred stocks were again modestly firmer as the midweek trading session began.

The Wells Fargo Hybrid and Preferred Securities index was up 3 basis point at mid-morning.

The new Capital One Financial Corp. deal – a $500 million issue of 6.7% series D fixed-rate noncumulative perpetual preferred stock that priced Tuesday – had freed to trade as of early Wednesday, a trader said.

The preferreds were pegged at $25.05.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and J.P. Morgan Securities LLC were the bookrunners.

The company initially planned to sell $250 million of the preferreds at initial price talk of 6.875%.

Meanwhile, Scorpio Tankers Inc.’s $45 million of 7.5% $25-par senior unsecured notes due 2017 – another deal from Tuesday – had not yet freed up, the trader said, seeing a $24.65 bid for the notes.

Stifel, Nicolaus & Co. Inc., Jefferies Inc., Credit Suisse Securities (USA) LLC and Janney Montgomery Scott LLC ran the books on the deal, which was upsized from $25 million.

From last week’s business, Urstadt Biddle Properties Inc.’s $70 million of 6.75% series G cumulative redeemable perpetual preferreds began trading on the New York Stock Exchange.

The deal came Oct. 22. The ticker symbol is “UBPPG.”

The paper was trading at $25.02 early in the day.

BMO Capital Markets ran the books on that deal.

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