Morning Commentary: Hancock’s $25-par notes free to trade; Goodrich declares preferred dividends

By Stephanie N. Rotondo

Phoenix, March 3 – The preferred stock market was slightly lower Tuesday, according to the Wells Fargo Hybrid and Preferred Securities index.

The index was down 2 basis points at mid-morning.

A trader said Hancock Holding Co.’s $150 million of 5.95% $25-par notes due 2045 freed to trade early in the session.

The deal priced Monday, coming upsized from $100 million.

The trader said that the deal wasn’t seeing much action and that some investors were not pleased with the coupon.

“They said they were coming at 6.125%, then revised it to 6%, then it came at 5.95%,” he said. “It kind of seems like you are nickel-and-diming your retail [investors].”

He quoted the issue at $24.88 bid, $24.97 offered.

Morgan Stanley & Co. LLC was the bookrunner.

Meanwhile, Goodrich Petroleum Corp.’s preferreds continued to gain momentum as the company announced dividends.

The 10% series C cumulative preferreds (NYSE: GDPPC) were up $1.99, or 21.4%, at $11.29 early in the session. The 9.75% series D cumulative preferreds (NYSE: GDPPD) had improved $1.97, or 21.23%, at $11.25.

Holders of the series C preferreds will receive a dividend of 62.5 cents per share on March 16. The dividend on the Ds will be 60.9375 cents per share on the same date.

As for the 5.375% series B convertible preferreds, those holders will get 67.19 cents per share.

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