Recent preferreds holding their ground; MVC Capital's 7.25% $25-par notes listed on NYSE

By Stephanie N. Rotondo

Phoenix, March 1 - As the new month got underway, the preferred stock market was "just sitting there," a trader said.

Among recent deals, Ventas Realty LP's new $225 million issue of 5.45% $25-par senior notes due 2043 freed from the syndicate early in the day's session.

The deal priced late Thursday.

"It's been bid up," a trader said, seeing a trade as high as $25.25, though he placed the issue at $25.15 bid. "I don't get it, but so be it."

By the end of business, the issue had reached the top of the day's most active list, with over 4.1 million shares changing hands, according to a market source.

The notes technically closed down 17 cents, the source said, but he noted that the last trade of the day was among the lowest prices seen all day. For most of the day, he said, the issue was at par or above.

He said the volume weighted average price was "probably a more indicative price," which was $25.06.

LaSalle Hotel Properties' $100 million of 6.375% series I cumulative redeemable preferreds - a deal that came Wednesday - was meantime holding in at $24.85 bid, $24.90 offered.

As for Pitney Bowes Inc.'s recent $375 million sale of 6.7% $25-par notes due 2043, those were seen at $24.87 bid, $24.92 offered at midday. After the bell, the paper - which also made the day's most active list - was seen down 6 cents at $24.94.

That deal came Tuesday.

From Monday, Hersha Hospitality Trust's $75 million of 6.875% series C cumulative redeemable preferreds were holding their ground around $25.05.

And, MVC Capital Inc.'s $70 million of 7.25% $25-par senior notes due 2023 were admitted to the New York Stock Exchange on Friday.

The deal priced Feb. 19. The ticker symbol is "MVCB."

The notes were at $25.08 at midday, up from opening levels of $25.03. But by the close, the issue had backed off to $25.04.

Overall, the day was deemed "kind of mixed" by a market source.

"We had better liquidity than earlier in the week, but still not great by any stretch of the imagination."

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